What Is the Internal Rate of Return for a Project

question 124

Multiple Choice

What is the internal rate of return for a project that requires an initial investment of $76,000 and then generates cash flows of $20,507 per year for 7 years?

• A)16%
• B)17%
• C)18.2%
• D)19%

---

Definitions:

Price

The amount of money required to purchase a good or service, determined by supply and demand dynamics.

Tax Burden

The financial charge or impact that a taxpayer faces due to government taxation.

Buyers

Individuals or entities that purchase goods or services for personal use, resale, or production purposes.

Unit

A standard measure or quantity used in expressing the size, amount, or extent of something, often used in economics for analysis.