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.

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Definitions:

Robinson-Patman Act

A United States federal law aimed at protecting small businesses from predatory pricing practices by larger competitors and preventing price discrimination.

Discriminate in Prices

The practice of charging different prices to different consumers for the same product or service, based on various factors such as willingness to pay, location, or purchase volume.

Unlawful

Actions or conduct that are not permitted by law and could lead to legal penalties.

Fair Trade Act

Legislation aimed at ensuring producers in developing countries are paid fair prices for their goods.