A Company Is Considering an Iron Ore Extraction Project That

question 49

Multiple Choice

A company is considering an iron ore extraction project that requires an initial investment of $1,300,000 and will yield annual cash flows of $789,314 for two years.The company's discount rate is 9%.Calculate IRR.
Present value of ordinary annuity of $1:

• A)14%
• B)16%
• C)13%
• D)12%

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Definitions:

Courts

Institutions established by governments to administer justice in civil, criminal, and administrative matters through the application of law.

Injunction

A judicial order that requires a party to do or to refrain from doing specific acts, used to prevent harm or to maintain the status quo during litigation.

Unionization

is the process by which workers form or join a union to collectively negotiate with their employers regarding wages, working conditions, and other employment related matter.

Court Order

A legal directive issued by a court requiring a party to do or refrain from doing specific acts.