A project will generate annual cash flows of $237,500 for each of the next three years, and a cash flow of $274,300 during the fourth year. The initial cost of the project is $765,800. What is the internal rate of return of this project? Multiple Choice 11.61% 8.93% 10.72% 9.53% 10.12%
A project will generate annual cash flows of $237,500 for each of the next three years, and a cash flow of $274,300 during the fourth year. The initial cost of the project is $765,800. What is the internal rate of return of this project? Multiple Choice 11.61% 8.93% 10.72% 9.53% 10.12%
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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![A project will generate annual cash flows of $237,500 for each of the next three years, and a
cash flow of $274,300 during the fourth year. The initial cost of the project is $765,800. What
is the internal rate of return of this project?
Multiple Choice
O
O
11.61%
8.93%
10.72%
9.53%
10.12%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F965efb7c-b675-4535-9a01-df6af522f78d%2F48533586-6735-45fa-b443-ed2b00fe4bd4%2Fdjhu38t_processed.png&w=3840&q=75)
Transcribed Image Text:A project will generate annual cash flows of $237,500 for each of the next three years, and a
cash flow of $274,300 during the fourth year. The initial cost of the project is $765,800. What
is the internal rate of return of this project?
Multiple Choice
O
O
11.61%
8.93%
10.72%
9.53%
10.12%
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