(Ignore income taxes in this problem.)The following data pertain to an investment project: The internal rate of return is closest to:

Name: (Ignore income taxes in this problem.)The following data pertain to an investment project: The internal rate of return is closest to:
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Question

(Ignore income taxes in this problem.)The following data pertain to an investment project:  The internal rate of return is closest to:

Quizplus · Accepted Answer

Factor of the internal rate of return = Investment required ÷ Annual net cash inflow
= $34,055 ÷ $5,000 = 6.811
This factor is the present value of an annuity for 15 periods at 12% per period.

(Ignore Income Taxes in This Problem