A Firm Is Considering a Project Requiring an Investment of £100,000

question 58

Multiple Choice

A firm is considering a project requiring an investment of £100,000. The project would generate annual cash inflows of £26,380 per year for the next five years. The approximate internal rate of return for the project is

• A)8%.
• B)10%.
• C)12%.
• D)16%.

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Definitions:

Social Entrepreneurship

The practice of creating businesses with the primary goal of achieving social impact rather than maximizing profits alone.

Multiple Sources

Relying on or referring to more than one origin or point of information.

Government Contracts

Agreements entered into by government entities and private companies or individuals for the provision of goods, services, or execution of works.

State Taxes

Taxes imposed by individual states in a country, which can include income, sales, property, and other forms of taxation.