A Project Has an Initial Outlay of $4,000

question 58

Multiple Choice

A project has an initial outlay of $4,000. It has a single payoff at the end of Year 4 of $6,996.46. What is the IRR for the project (round to the nearest percent) ?

• A) 16%
• B) 13%
• C) 21%
• D) 15%

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Definitions:

Title

A legal term referring to the rightful ownership of property, including the rights to use, sell, or lease it.

Paid

The state of having received money or compensation for services or goods.

Requirement of Writing

A legal principle that certain types of contracts or agreements must be in writing to be legally enforceable.

Sale of Goods Act

A legal framework that regulates the sale and purchase of goods, ensuring certain standards and rights are maintained between buyers and sellers.