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You are offered an investment that requires $1,000 now and generates cash ows of $150 at the end of each of the next 10 years.

You are offered an investment that requires $1,000 now and generates cash ows of $150 at the end of each of the next 10 years. If the required return is 10%, what should be the IRR of this investment?

Question 1 options:

8.1%.
7.1%.
The IRR is negative.
11.1%.
The IRR is 0.
9.1%.
10.1%.

You are offered an investment that requires $1,000 now and generates cash ows of $150 at the end of each of the next 10 years. If the required return is 10%, what should be the IRR of this investment?

Question 1 options:

8.1%.
7.1%.
The IRR is negative.
11.1%.
The IRR is 0.
9.1%.
10.1%.

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