If you invest $131,300 in a project which yields an annual return of $25,400, how many years will it take to recover your investment if the annual interest rate is 7.5%? О а.5 O b.7 О с.6 O d. 8 O e. 9
If you invest $131,300 in a project which yields an annual return of $25,400, how many years will it take to recover your investment if the annual interest rate is 7.5%? О а.5 O b.7 О с.6 O d. 8 O e. 9
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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Transcribed Image Text:If you invest $131,300 in a project which yields an annual return of $25,400, how many years will it take to recover your investment if the annual interest
rate is 7,5%?
O a. 5
O b. 7
O c. 6
O d. 8
O e. 9
A project is economically feasible if:
O a. Its future worth is less than zero
O b. Its internal rate of return is equal to its external rate of return
O c. Its external rate of return is less than the minimum attractive rate of return
O d. Its external rate of return is equal to the minimum attractive rate of return
O e. Its external rate of return is greater than 0
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