(Ignore Income Taxes in This Problem -
the Internal Rate of Return on the Investment Is

question 45

Multiple Choice

(Ignore income taxes in this problem.) Chow Company has gathered the following data on a proposed investment project: $\begin{array}{lr} \text {Investment required in equipment. } &£ 142,500\\ \text {Annual cash inflows. } &£ 30,000\\ \text {Salvage value. } &£ 0 \\ \text { Life of the investment. } & \text { 8 years}\\ \text { Required rate of return. } &10 \%\\\end{array}$

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The internal rate of return on the investment is closest to

• A)13%.
• B)15%.
• C)14%.
• D)12%.

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Definitions:

Instincts

Natural and usually unchanging behaviors exhibited by animals when triggered by specific stimuli.

Reflexes

Automatic, involuntary responses or actions to specific stimuli, serving as basic mechanisms of the nervous system.

Reinforcement Schedule

A strategy in behavior analysis that determines how and when a response will be followed by a reinforcement.

Social Learning Theory

Proposes that new behaviors can be acquired by observing and imitating others.