Rose Henderson
Rose Henderson invested in a project that required an initial amount of $1,560 and returned one cash inflow of $12,000 at the end of the 18th year. A partial table of the present value of an annuity of $1 in arrears is as follows: $$\begin{array} { l l l l l l l l l }
\text { Year } & 2 \% & 4 \% & 6 \% & 8 \% & 10 \% & 12 \% & 14 \% & 16 \% \
18 & 0.700 & 0.494 & 0.350 & 0.250 & 0.180 & 0.130 & 0.095 & 0.069
\end{array}$$
-Refer to Rose Henderson. What is the internal rate of return for this investment?

Question

Rose Henderson
Rose Henderson invested in a project that required an initial amount of $1,560 and returned one cash inflow of $12,000 at the end of the 18th year. A partial table of the present value of an annuity of $1 in arrears is as follows: $$\begin{array} { l l l l l l l l l } 
\text { Year } & 2 \% & 4 \% & 6 \% & 8 \% & 10 \% & 12 \% & 14 \% & 16 \% \
18 & 0.700 & 0.494 & 0.350 & 0.250 & 0.180 & 0.130 & 0.095 & 0.069
\end{array}$$
-Refer to Rose Henderson. What is the internal rate of return for this investment?

Quizplus · Accepted Answer

The present value factor for 12% is 0.130, which when multiplied by $12,000 gives approximately $1,560, matching the initial investment.

Rose Henderson Rose Henderson Invested in a Project That Required

Rose Henderson
Rose Henderson Invested in a Project That Required