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Determine the Internal Rate of Return for a Capital Project

Question 129

Multiple Choice

Determine the Internal Rate of Return for a capital project that calls for:
An immediate cash outflow of $250,000.
Cash inflows of $100,000 at the end of years 1, 2, 4, 5, 7, 8 and 9.
Cash inflows of $25,000 at the end of 3, 6 years.
A final cash inflow of $150,000 at the end of year 10.


A) 17.31% comp. annually
B) 25.07% comp. annually
C) 31.90% comp. annually
D) 37.19% comp. annually
E) 44.39% comp. annually

Correct Answer:

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