Below Is a Table for the Present Value of $1

question 76

Multiple Choice

Below is a table for the present value of $1 at Compound interest. Below is a table for the present value of an annuity of $1 at compound interest.
Using the tables above, what would be the internal rate of return of an investment of $294,840 that would generate an annual cash inflow of $70,000 for the next 5 years?

• A) 6%
• B) 10%
• C) 12%
• D) cannot be determined from the data given.

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Definitions:

Limited Decision Making

A consumer decision-making process used when purchasing products occasionally or needing little information about a product.

Straight Rebuy

The routine repurchase of a product or service without modification from the same supplier.

Existing Supplier

A supplier with whom a company has an ongoing relationship for the provision of goods or services.

Buying Situations

Various contexts or scenarios influencing consumer purchasing behavior, including routine shopping, complex decision making, or impulse buying.