What the irr for the investment is

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Question 1: Consider an $8000 investments with 8% expected rate of return annually on a pretax basis. This investment involves the purchase of 200 shares of $40 common stock that does not pay dividends . The investor will hold this investments for three years, and the investor sells the investment in year three. The IRR for this investment is: (there will tax 25% on capital gain):

Select one:

a. 0.072
b. 0.078
c. 0.061
d. 0.069

 

Reference no: EM132869537

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