Below Is a Table for the Present Value of $1

question 92

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 that required an investment of $189,550, and would generate an annual cash inflow of $50,000 for the next 5 years?

• A) 6%
• B) 10%
• C) 12%
• D) cannot be determined from the data given.

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