What Is the Internal Rate of Return on an Investment

question 12

Multiple Choice

What is the internal rate of return on an investment that has an initial cost of $38,400 and projected cash inflows of $11,200,$19,600,and $18,100 for Years 1 to 3,respectively?

• A)11.86%
• B)12.37%
• C)11.08%
• D)13.92%
• E)12.15%

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Definitions:

Birth Rates

The average number of births per 1,000 people in a given population during a specific period of time.

Demographic Transition

The transition from high birth and death rates to lower birth and death rates as a country or region develops from a pre-industrial to an industrialized economic system.

Population Growth

An increase in the number of individuals in a population over a specific period of time.

Rising Incomes

An increase in the monetary earnings of individuals or households over time, typically contributing to improved living standards.