Use the following table, A company has a minimum required rate of return of 8%. It is considering investing in a project that costs $227,790 and is expected to generate cash inflows of $90,000 each year for three years. The approximate internal rate of return on this project is
A) 8%.
B) 9%.
C) 10%.
D) The IRR on this project cannot be approximated.

Question

Use the following table,  A company has a minimum required rate of return of 8%. It is considering investing in a project that costs $227,790 and is expected to generate cash inflows of $90,000 each year for three years. The approximate internal rate of return on this project is
A) 8%. 
B) 9%. 
C) 10%. 
D) The IRR on this project cannot be approximated.

Quizplus · Accepted Answer

The Answer of Use the following table,  A company has a minimum required rate of return of 8%. It is considering investing in a project that costs $227,790 and is expected to generate cash inflows of $90,000 each year for three years. The approximate internal rate of return on this project is
A) 8%. 
B) 9%. 
C) 10%. 
D) The IRR on this project cannot be approximated.

Use the Following Table, a Company Has a Minimum