What is the internal rate of return (IRR) of an investment that requires an initial investment of $14,000 today and pays $19,320 in one year's time?A. 39%B. 37%C. 41%D. 38%

Initial investment (PV) = $14,000Future value (FV) = $19,320Number of years = 1 years

Answered: What is the internal rate of return…

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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14: answer

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What is the internal rate of return (IRR) of an investment that requires an initial investment of $14,000 today and pays $19,320 in one year's time? OA. 39% OB. 37% C. 41% OD. 38%