Cooper Industries Is Considering a Project That Would Require an Initial

question 23

Multiple Choice

Cooper Industries is considering a project that would require an initial investment of $101,000. The project would result in cost savings of $62,000 in year 1 and $70,000 in year 2. What is the internal rate of return for the project?

• A) less than 15%
• B) between 16% and 17%
• C) between 18% and 20%
• D) greater than 22%

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