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(Ignore Income Taxes in This Problem

Question 28

Multiple Choice

(Ignore income taxes in this problem.) Cuarto Corporation just invested in a project that has an internal rate of return of 24%. This project is expected to generate $44,000 of net cash inflows each year of its 6 year life. The project has no salvage value. What was the initial investment required for this project?


A) $63,360
B) $72,600
C) $132,880
D) $160,000

Correct Answer:

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