An Investment That Costs $105,000 Today Is Expected to Produce

Multiple Choice

An investment that costs $105,000 today is expected to produce the following cash inflows over each of the next five years: $20,000; $25,000; $23,000; $22,000; $21,000.What is the IRR (compounded annually) for this investment?

A) 188.6%
B) 18.9%
C) 1.89%
D) −18.9%