An investment of $1,000 will return $60 annually forever.What is its internal rate of return?
A) 6%
B) 0.60%
C) 16.67%
D) 60%
E) Cannot be determined.

Name: An investment of $1,000 will return $60 annually forever.What is its internal rate of return? A) 6% B) 0.60% C) 16.67% D) 60% E) Cannot be determined.
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Question

Quizplus · Accepted Answer

This problem is solved like a perpetuity where:
Rate = 11ea7fdb_fbe6_491d_a768_e16359328889_TB2902_11 Rate = 11ea7fdb_fbe6_491e_a768_fd3134f45bc1_TB2902_11 = 6%

An Investment of $1,000 Will Return $60 Annually Forever