Flynn,IncIs Considering a Four-Year Project That Has an Initial Outlay

question 46

Multiple Choice

Flynn,Inc.is considering a four-year project that has an initial outlay or cost of $80,000.The future cash inflows from its project are $40,000,$40,000,$30,000,and $30,000 for years 1,2,3 and 4,respectively.Flynn uses the internal rate of return method to evaluate projects.What is the approximate IRR for this project?

• A)The IRR is less than 12%.
• B)The IRR is between 12% and 20%.
• C)The IRR is about 24.55%.
• D)The IRR is about 28.89%.

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Definitions:

Covalent

Describing a type of chemical bond formed by the sharing of electrons between atoms.

Ionic

Relating to ions or the chemical bonds formed through the electrical attraction between oppositely charged ions.

Bonding

The attractive force that holds atoms or ions together in a molecule or compound, forming a stable substance.

Lewis Structure

A schematic that outlines the atomic connections within a molecule and highlights any existing unbonded electron pairs.