George Shaw & Co. invested in a project that was to last for 2 years. The project has an internal rate of return of 12%. The project is expected to produce cash inflows of $70,000 in the first year and $80,000 in the second year. The project cost is:
A) $143,760
B) $142,510
C) $150,000
D) $126,270

Question

Quizplus · Accepted Answer

The Answer of George Shaw & Co. invested in a project that was to last for 2 years. The project has an internal rate of return of 12%. The project is expected to produce cash inflows of $70,000 in the first year and $80,000 in the second year. The project cost is:
A) $143,760
B) $142,510
C) $150,000
D) $126,270