21. An investment of $894,168 promises to return $180,000 each year for the next eight years. If taxes are ignored, what is the internal rate of return? A. less than 9% B. 10% C. 12% D. more than 14%
21. An investment of $894,168 promises to return $180,000 each year for the next eight years. If taxes are ignored, what is the internal rate of return? A. less than 9% B. 10% C. 12% D. more than 14%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Capital budgeting
21. An investment of $894,168 promises to return $180,000 each year for the next eight years. If taxes are ignored, what is the
A. less than 9%
B. 10%
C. 12%
D. more than 14%
22. An investment is expected to generate returns of $60,000 per year for each of the next six years. If the initial amount invested is $240,000 and taxes are ignored, which of the following is closest to the internal rate of return?
A. 15%
B. 13%
C. 10%
D. 7%
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