An investment costs $500,000 today and is expected to produce a one-time inflow at the end of year 8 of $600,000. The IRR of this project is O A. between 1 and 2 percent. B. between 3 and 4 percent. OC. between 2 and 3 percent D. between 5 and 6 percent

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
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An investment costs $500,000 today and is expected to produce a one-time inflow at the end of year 8 of $600,000. The IRR of this project is
O A. between 1 and 2 percent.
O B. between 3 and 4 percent.
C. between 2 and 3 percent
O D. between 5 and 6 percent
Transcribed Image Text:An investment costs $500,000 today and is expected to produce a one-time inflow at the end of year 8 of $600,000. The IRR of this project is O A. between 1 and 2 percent. O B. between 3 and 4 percent. C. between 2 and 3 percent O D. between 5 and 6 percent
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