Internal Rate of Return: National Internet Networks Has Been Installing

question 47

Multiple Choice

Internal rate of return: National Internet Networks has been installing a fiber-optic network at a cost of $18 million. The company expects annual cash flows of $3.7 million over the next 10 years. What is this project's internal rate of return? (Round to the nearest percent.)

• A) 10%
• B) 12%
• C) 14%
• D) 16%

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Definitions:

Established Business Owner

An individual who owns and operates a business that has been in existence for some time and has a steady flow of operations and customers.

IT Consulting

Professional services that focus on advising businesses on how best to use information technology to meet their objectives and solve problems.

Competitive Salary

A salary offering that is attractive and comparable to what is being offered by competitors in the same industry or sector.

Audacious Project

A bold, ambitious initiative aimed at tackling significant challenges or achieving groundbreaking results.