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

question 116

Multiple Choice

Using the tables above,what would be the internal rate of return of an investment of $210,600 that would generate an annual cash inflow of $50,000 for the next 5 years?

• A) 6%
• B) 10%
• C) 12%
• D) 14%

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Definitions:

Advertising

A marketing strategy involving the use of paid communications to inform, persuade, and remind consumers about products, services, or brands.

Profits

The financial gain obtained when the revenue earned from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Jeweler

A person or business that designs, makes, sells, or repairs jewelry.

Clothing Store

A retail establishment that sells garments and apparel for men, women, and children.