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The Cash Inflows Expected During a Project's Life Are Equal

Question 66

Multiple Choice

The cash inflows expected during a project's life are equal in amount.In determining the internal rate of return, how is the present value factor calculated?


A) By dividing the initial outlay by the annuity amount
B) By multiplying the annuity amount by the number of years it occurs
C) By looking in the present value of an annuity table for the number of years and the respective discount rate
D) By dividing the present value of the annuity by the initial outlay

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