Internal Rate of Return: Lowell Communications, Inc

question 38

Multiple Choice

Internal rate of return: Lowell Communications, Inc., has been installing a fiber-optic network at a cost of $18 million. The firm 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:

Biological

Related to the study of living organisms and their vital processes, often emphasizing genetic and physiological attributes.

Environment

The surroundings or conditions in which a person, animal, or plant lives or operates.

Heredity

The passing of traits from parents to their offspring, either through asexual or sexual reproduction.

Nurture

The influence of external factors after conception, such as environmental and educational experiences, on personal development.