Simpson,Inc

question 77

Multiple Choice

Simpson,Inc.is considering a five-year project that has an initial outlay or cost of $80,000.The respective future cash inflows from its project for years 1,2,3,4 and 5 are: $15,000,$25,000,$35,000,$45,000,and $55,000.Simpson uses the internal rate of return method to evaluate projects.What is the project's IRR?

• A)The IRR is less than 22.50%.
• B)The IRR is about 24.16%.
• C)The IRR is about 26.16%.
• D)The IRR is over 26.50%.

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Definitions:

Longitudinal Study

A research method that involves repeated observations of the same variables (such as people) over short or long periods of time, often years or decades.

Demographically Similar

Refers to groups of people who share similar characteristics such as age, gender, income level, and education, often used in research to create comparable cohorts.

Single Participant

Research design involving the intensive study of a single subject to explore outcomes, behaviors, or responses to interventions over time.

ABAB Design

A type of experimental design in behavioral science research involving two phases (A and B), where A represents a baseline period and B represents an intervention period.