An Investment Project Requires a Net Investment of $100,000

Multiple Choice

An investment project requires a net investment of $100,000.The project is expected to generate annual net cash inflows of $28,000 for the next 5 years.The firm's 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%