Question
Consider the following information on an investment: Initial investment $100,000 Net present value $4,500 Cost of capital 10% What does this tell us regarding the
Consider the following information on an investment:
| Initial investment | $100,000 |
| Net present value | $4,500 |
| Cost of capital | 10% |
What does this tell us regarding the investment's internal rate of return?
A. The internal rate of return is greater than 10%.
B. The internal rate of return is less than 10%.
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Financial Management for Public, Health and Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
5th edition
1506326846, 9781506326863, 1506326862, 978-1506326849
