MacNamara Development Company Is Evaluating a Possible Investment in a Construction

question 92

Multiple Choice

MacNamara Development Company is evaluating a possible investment in a construction project. The cost will be $100,000, and it will generate cash flows as follows: The VP for construction believes this project has an internal rate of return somewhere in the range of 7% to 10%, but has asked the Controller to crunch the numbers. Using the trial and error method, and the PV factors shown here, determine what the IRR of this project is.
Choose the rate below which comes closest to the actual IRR.

• A)7%
• B)8%
• C)9%
• D)10%

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Definitions:

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Long-lasting, persistent health conditions that can be controlled but not necessarily cured.

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Conditions that come on quickly and can be severe but are of a short duration.

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Mental health or medical conditions that do not have a clear start and end point, and are characterized by ongoing or fluctuating symptoms over time.

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The occurrence of two or more diseases or disorders in the same individual at the same time.