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Question
Using only the information in the table below, what would the IRR be for an investment that cost $500 in period 0 and was sold for $750 in period 5?
Present Value Factor for Reversion of $1
| Period | 6% | 7% | 8% | 9% | 10% | ||
| 1 | .943396 | .934579 | .925926 | .917431 | .909091 | ||
| 2 | .889996 | .873439 | .857339 | .841680 | .826446 | ||
| 3 | .839619 | .816298 | .793832 | .772183 | .751315 | ||
| 4 | .792094 | .762895 | .713503 | .708425 | .683013 | ||
| 5 | .747258 | .712986 | .680583 | .644931 | .620921 | ||
| 6 | .704961 | .666643 | .630170 | .596267 | .564474 |
A) Between 6% and 7%
B) Between 7% and 8%
C) Between 8% and 9%
D) Between 9% and 10%
Answer
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