An investment is expected to generate net operating cash inflows of $25,000 per year for each of the next 5 years. If the initial amount invested is $101,000, which of the following is closest to the internal rate of return? 24.8% 6.5% 4.0% 7.5%

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 is expected to generate net operating cash inflows of $25,000 per year for each

of the next 5 years. If the initial amount invested is $101,000, which of the following is closest to

the internal rate of return?

24.8%

6.5%

4.0%

7.5%

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