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A Proposed Investment Costs $130,000 Today

Question 6

Multiple Choice

A proposed investment costs $130,000 today. The expected revenue flow is $40,000 at the end of year 1, and $140,000 at the end of year 2. Find the internal rate of return, correct to one decimal place.


A) 17.8%
B) 20.3%
C) 20.0%
D) 19.9%
E) 18.4%

Correct Answer:

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