What Is the Internal Rate of Return (IRR)of an Investment

question 89

Multiple Choice

What is the internal rate of return (IRR) of an investment that requires an initial investment of $10,000 today and pays $14,000 in one year's time?

• A)4%
• B)14%
• C)24%
• D)40%
• E)33%

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Definitions:

Prime Mover

A muscle or group of muscles whose contraction is chiefly responsible for producing a particular movement.

Dactylospasm

A medical condition characterized by involuntary, spasmodic contractions of the fingers or toes.

Contracture

The stiffening or loss of flexibility in a joint or muscle caused by scar tissue, often from lack of movement or use.

Cramp

A sudden, involuntary muscle contraction that is often painful, commonly affecting the legs and feet.