Multiple Choice
Chasteen,Inc.is considering an investment with an initial cost of $185,000 that would be depreciated straight-line to a zero book value over the life of the project.The cash inflows generated by the project are estimated at $76,000 for the first two years and $30,000 for the following two years.What is the internal rate of return?
A) 6.44 percent
B) 6.94 percent
C) 7.43 percent
D) 7.55 percent
E) 8.11 percent
Correct Answer:
Verified
Correct Answer:
Verified
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