In using the internal rate of return method, the internal rate of return factor was 4.0 and the equal annual cash inflows were $16,000.The initial investment in the project must have been

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The internal rate of return factor (4.0) is used to determine the initial investment by dividing the annual cash inflows ($16,000) by the factor. Thus, $16,000 / 0.25 (1/4.0) = $64,000.

In Using the Internal Rate of Return Method, the Internal