Question $5$

A company is considering a project with the following

characteristics:

Initial investment:

$$50,000$

Annual cash inflows for $7$ years: $$10,600$ per year

The company's discount rate is $13\%.$

Which answer below is closest to the Internal Rate

of Return for this project?

$8\%$

$9\%$

$10\%$

$11\%$

$12\%$

$13\%$

$14\%$

$15\%$ For reference, abbreviated versions of the present value tables from Chapter $12$ are below. Use these

tables for any present value calculations in the following questions.

Present Value of an ordinary annuity of $$1$ received at the end of the period for $n$ periods.