An Investment Project Requires an Initial Outlay of $100,000, and Is

Multiple Choice

An investment project requires an initial outlay of $100,000, and is expected to generate annual cash inflows of $28,000 for the next 5 years. The cost of capital is 12 percent. Determine the internal rate of return for the project (to the nearest tenth of one percent) .

A) 12.0%
B) 12.6%
C) 3.6%
D) 12.4%