Glossimer Thread Company Is Evaluating an Investment That Will Cost

question 75

Multiple Choice

Glossimer Thread Company is evaluating an investment that will cost $760,000 and will yield cash inflows of $255,000 in the first year,$325,000 in the second year,and $380,000 in the third and the final year.Use the table below and determine the internal rate of return.
Present value of $1:

The IRR of the project will be ________.

• A)between 10% and 11%
• B)less than 11%
• C)less than 10%,more than 11%
• D)more than 11%

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