Gladeer Company Is Evaluating an Investment That Will Cost $520,000

question 61

Multiple Choice

Gladeer Company is evaluating an investment that will cost $520,000 and will yield cash flows of $300,000 in the first year, $200,000 in the second year, and $100,000 in the third and final year. Use the tables below and determine the internal rate of return. Present value of $1: The IRR of the project will be:

• A)between 9% and 10%.
• B)less than 8%
• C)less than 9%, more than 8%
• D)more than 10%

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