$$\text { Reference: } 10 - 02$$ Oriental Company Has Gathered the Following Data on a Proposed

$$\text { Reference: } 10 - 02$$ Oriental Company has gathered the following data on a proposed investment project: $$\begin{array} { | l | l | } \hline \text { Investment in depreciable equipment } & \$ 200,000 \\\hline \text { Annual net cash flows } & \$ 50,000 \\\hline \text { Life of the equipment } & 10 \text { years } \\\hline \text { Salvage value } & \$ 20 \\\hline \text { Discount rate } & 10 \% \\\hline\end{array}$$ The company uses straight-line depreciation on all equipment.
-How can the internal rate of return of a project be determined

A) By finding the discount rate that yields a net present value of zero.
B) By determining that the project cash flows are equal each year.
C) By some other method than listed above.
D) By determining that the project profitability index is greater than one.

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