You Require an IRR of 14% to Accept a Project

question 59

Multiple Choice

You require an IRR of 14% to accept a project. If the project will yield $10,000 per year for 10 years, what is the maximum amount that you would be willing to invest in the project?

• A)Less than $50,000
• B)More than $50,000 and less than $60,000
• C)More than $60,000 and less than $70,000
• D)More than $70,000

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Definitions:

Awareness

The state or condition of being conscious of something, such as a brand or product, which is often the first stage in the marketing funnel.

Hierarchy of Effects

A sequence of stages a consumer goes through, from awareness to knowledge, liking, preference, conviction, and finally purchase of a product or service.

Last Stage

The final phase in a process, such as in product development or the life cycle of a product in the market.

Interest

A charge for borrowing money, typically a percentage of the borrowed amount, or intense curiosity or concern in something.