Discussion
An outlay of 10 000 returning 2500 a year for 6 years has an internal rate of return nearest
Answer: D
The series present worth factor required is 10 000 over 2500, that is 4.0, and at 6 years the tables give 4.0 at about 13 per cent. Total receipts of 15 000 against 10 000 spent would suggest far more if timing were ignored.
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