An investment of $81,000 yields a net annual income of $17,000 for 6 years. What is the internal rate of return (IRR) for this investment? O a. 8.77% O b. 10.52% O c.4.67% O d. 7.01% O e. 5.61%
An investment of $81,000 yields a net annual income of $17,000 for 6 years. What is the internal rate of return (IRR) for this investment? O a. 8.77% O b. 10.52% O c.4.67% O d. 7.01% O e. 5.61%
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 8P
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![An investment of $81,000 yields a net annual income of $17,000 for 6 years. What is the internal
rate of return (IRR) for this investment?
O a. 8.77%
O b. 10.52%
O c. 4.67%
O d. 7.01%
O e. 5.61%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F32cd0482-9784-469b-8a33-2ed71a2e9309%2F3416d47a-e71d-4070-bd3d-baa3311348bd%2Fshjvtx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:An investment of $81,000 yields a net annual income of $17,000 for 6 years. What is the internal
rate of return (IRR) for this investment?
O a. 8.77%
O b. 10.52%
O c. 4.67%
O d. 7.01%
O e. 5.61%
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