单选题
The capital budgeting director of Green Manufacturing is evaluating a
laser imaging project with the following characteristics:
Cost:
$150000
Expected life: 3 years
After-tax cash flows: $ 60317
per year
Salvage value : $ 0
If Green Manufacturing's cost
of capital is 11.5 percent, what is the project's internal rate of return (IRR)
?
- A. $ 3875.
- B. 2.49 years.
- C. 10.0%.
【正确答案】
C
【答案解析】Since we are seeking the IRR, the answer has to be in terms of a rate of return, this eliminates options not written in percentages. Since they payments (cash flows) are equals, we can calculate the IRR as: N =3, PV =150000, PMT =60317, CPT I/Y =9.999.