A Company Is Considering an Iron Ore Extraction Project That

question 68

Multiple Choice

A company is considering an iron ore extraction project that requires an initial investment of $1,400,000 and will yield annual cash inflows of $613,228 for three years.The company's discount rate is 9%.Calculate IRR. Present value of ordinary annuity of $1:
$$\begin{array} { | r | r | r | r | r | r | r | r | } \hline & 10 \% & 12 \% & 14 \% & 15 \% & 16 \% & 18 \% & 20 \% \\\hline 1 & 0.909 & 0.893 & 0.877 & 0.870 & 0.862 & 0.847 & 0.833 \\\hline 2 & 1.736 & 1.690 & 1.647 & 1.626 & 1.605 & 1.566 & 1.528 \\\hline 3 & 2.487 & 2.402 & 2.322 & 2.283 & 2.246 & 2.174 & 2.106 \\\hline 4 & 3.170 & 3.037 & 2.914 & 2.855 & 2.798 & 2.690 & 2.589 \\\hline\end{array}$$

• A)15%
• B)17%
• C)14%
• D)13%

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Definitions:

Somatic Symptom

A physical symptom that is either greatly exacerbated or caused by psychological factors, often part of somatic symptom and related disorders.

Alter

To change or modify something, often to improve it or to adapt to new conditions.

Dissociative Symptoms

Experiences involving a disconnection and lack of continuity between thoughts, memories, surroundings, actions, and identity.