Given the Following Annual Net Cash Flows, Determine the IRR

question 98

Multiple Choice

Given the following annual net cash flows, determine the IRR to the nearest whole percent of a project with an initial outlay of $1,800. Year Net Cash Flow
1 $1,000
2 $750
3 $500

• A) 14%
• B) 12%
• C) 8%
• D) 25%

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Definitions:

CFO

The Chief Financial Officer, an executive responsible for managing the financial actions of a company.

Corporate Strategies

Plans or methods employed by a company to achieve its business goals and secure a competitive position in the market.

Corporate Purpose

The stated, overarching goals and intentions of a corporation, guiding its decisions and operations.

Mission Statement

A formal summary of the aims and values of a company, organization, or individual.