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、

A. $ 3875.
B、

B. 2.49 years.
C、

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.