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qid 742 · business
Question: You are willing to buy a new machine for $1,000 because it will save you $150 annually for the next 10 years. What is the rate of return on this investment?
- 14%
- 9.5%
- 8.0516%
- 10%
- 8.5%
- 12%
- 11.3%
- 5%
- 7.5%
- 6.2%
Our answer: C. 8.0516% Source quote machine-checked (exact quote)
How it was answered
Stored formula / worked method, replayed by code
Current source
Wikipedia, "Internal rate of return"
https://en.wikipedia.org/wiki/Internal_rate_of_return
“The IRR of an investment or project is the "annualized effective compounded return rate" or rate of return that sets the net present value (NPV) of all cash flows (both positive and negative) from the investment equal to zero.”
Source quote machine-checked (exact quote)
Earlier version (superseded)
https://en.wikipedia.org/wiki/Internal_rate_of_return
Source weak (http_get_200_text_and_question_terms)
Earlier version (superseded)
https://en.wikipedia.org/wiki/Internal_rate_of_return
Source weak (http_get_200_text_and_question_terms)
Earlier version (superseded)
No public source has been found for this card yet (3 places checked internally).
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