(Ignore income taxes in this problem. )If an investment of $14,760 now will yield $18,000 at the end of one year,then the internal rate of return for this investment to the nearest whole percentage is:

Question

Quizplus · Accepted Answer

Factor of the internal rate of return = Investment required F1F1F1S1F1F1F10 Annual net cash inflow
= $14,760 F1F1F1S1F1F1F10 $18,000 = 0.820
The factor of .820 for 1 year represents an internal rate of return of 22%.

(Ignore Income Taxes in This Problem