Carte Blanco Company is evaluating an investment of $1,000,000 which will yield cash flows of $257,000 per year for 5 years with no residual value. What is the internal rate of return? (Please choose the rate that is closest to the actual solution.)

Question

Quizplus · Accepted Answer

Using a financial calculator or Excel, the internal rate of return for this investment is found to be 9.28%, which is closest to answer choice C (9%). Therefore, the best choice is C.

Carte Blanco Company Is Evaluating an Investment of $1,000,000 Which