Assume That an Initial Investment Is $100,000 and That the Estimated

question 61

Multiple Choice

Assume that an initial investment is $100,000 and that the estimated annual cash flows for the next 5 years are $25,000. What is the internal rate of return (IRR) for this investment?

• A) 5.56%
• B) 18%
• C) 1%
• D) 8%

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Definitions:

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California Missions

A chain of religious and military outposts established by Spanish Franciscans in the 18th century to spread Christianity among local Native Americans in what is now California.

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The practice of marrying multiple spouses simultaneously, recognized in some cultures and religions but illegal in many countries.

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