Using the Tables Above,what Would Be the Internal Rate of Return

question 120

Multiple Choice

Using the tables above,what would be the internal rate of return of an investment that required an investment of $227,460 and would generate an annual cash inflow of $60,000 for the next 5 years?

• A) 6%
• B) 10%
• C) 12%
• D) cannot be determined from the data given

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Definitions:

Economic Function

The role that an individual, entity, or structure plays within the economy, influencing the distribution, production, and consumption of goods and services.

Profits and Losses

The financial gain or deficit that a business experiences, calculated as the difference between total revenues and total costs.

Income Distribution

The way in which a nation’s total earnings are spread among its population, affecting the economic inequality among different groups.

Competitive Industry Y

An industry where a large number of firms compete against each other to sell their goods or services, making no single firm able to control the market price.