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A Company Is Considering an Iron Ore Extraction Project That

Question 49

Multiple Choice

A company is considering an iron ore extraction project that requires an initial investment of $1,300,000 and will yield annual cash flows of $789,314 for two years.The company's discount rate is 9%.Calculate IRR.
Present value of ordinary annuity of $1:
A company is considering an iron ore extraction project that requires an initial investment of $1,300,000 and will yield annual cash flows of $789,314 for two years.The company's discount rate is 9%.Calculate IRR. Present value of ordinary annuity of $1: A) 14% B) 16% C) 13% D) 12%


A) 14%
B) 16%
C) 13%
D) 12%

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