A Project Involves an Immediate Expenditure of $2 000, and Will

Multiple Choice

A project involves an immediate expenditure of $2 000, and will require additional expenditures of $150 a year for the next ten years, starting one year from now. After ten years it yields an income of $8 000, but a year later a further expenditure of $1 000 will be required to close down the project. What is its rate of return?

A) 9%
B) 10%
C) 11%
D) 12%
E) 13%