Below Is a Table for the Present Value of $1

question 38

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:

Labor Force Statistics

Data and metrics that provide information about the employment and unemployment rates, workforce composition, and other labor market indicators.

Efficiency Wages

Wages set above the equilibrium level by employers to increase worker productivity, discourage turnover, and reduce shirking.

Efficiency-Wage Theory

A theory suggesting employers pay above the market equilibrium wage to increase worker productivity.

Economic Theory

The study of how societies use scarce resources to produce valuable commodities and distribute them among different people.