Below Is a Table for the Present Value of $1

question 89

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.

---

Definitions:

Objective Function

A critical component in optimization problems, representing the target quantity to be optimized, through minimization or maximization, within the constraints of the problem.

Net Present Value

A financial metric that calculates the value of a project or investment's expected future cash flows, discounted back to their present value.

Process

A series of actions or steps taken in order to achieve a particular end.

13-Inch Rolls

A specification often used in industries such as printing or paper manufacturing, referring to the width of rolls of material.