You Require an Internal Rate of Return of 8% to Accept

question 14

Multiple Choice

You require an internal rate of return of 8% 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) $51,400
• B) $67,100
• C) $100,000
• D) $144,870

---

Definitions:

Damages

Compensation claimed by a person for loss or injury as a result of a breach of contract or tort.

Compensation

Payment or reward given to someone as a recompense for loss, injury, or suffering.

Legal Systems

The frameworks and institutions through which laws are developed, interpreted, and enforced to govern social behavior and resolve disputes.

Affirmed

In a legal context, when a higher court upholds the decision of a lower court, confirming the original decision was correct.