A Project Requires an Initial Investment of $100 000 and Immediately

Multiple Choice

A project requires an initial investment of $100 000 and immediately pays $25 000. The next year this project requires an additional investment of $50 000 and does not pay anything. In the following year the project pays $150 000. The internal rate of return (i) for this project can be obtained by

A) using a present worth factor.
B) solving a quadratic equation.
C) calculating an external rate of return.
D) solving a system of two equations.
E) solving an ith degree polynomial equation.