Internal rate of return of an investment

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Reference no: EM13974102

Below is a table for the present value of $1 at compound interest.

Year

6%

10%

12%

1

0.943

0.909

0.893

2

0.890

0.826

0.797

3

0.840

0.751

0.712

4

0.792

0.683

0.636

5

0.747

0.621

0.567

Below is a table for the present value of an annuity of $1 at compound interest.

Year

6%

10%

12%

1

0.943

0.909

0.893

2

1.833

1.736

1.690

3

2.673

2.487

2.402

4

3.465

3.170

3.037

5

4.212

3.791

3.605

Using the tables above, what would be the internal rate of return of an investment of $210,600 that would generate an annual cash inflow of $50,000 for the next 5 years?

a.6%

b.12%

c.10%

d.14%

Reference no: EM13974102

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