TLC, Inc Is Considering an Investment with an Initial Cost of of $175,000

question 51

Multiple Choice

T.L.C., Inc. is considering an investment with an initial cost of $175,000 that would be depreciated straight line to a zero book value over the life of the project. The cash inflows generated by the project are estimated at $76,000 for the first two years and $30,000 for the following two years. What is the internal rate of return?

• A) 9.27 percent
• B) 9.98 percent
• C) 10.62 percent
• D) 10.79 percent
• E) 11.58 percent

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