问题
单项选择题
An investment with a cost of $ 5000 is expected to have cash inflows of $ 3000 in year 1, and $4000 in year 2. The internal rate of return (IRR) for this investment is closest to.（）
A. 15%.
B. 30%.
C. 25%.
答案
参考答案：C
解析：
The IRR is the discount rate that makes the net present value of the investment equal to 0.
This means - $ 5000 + $ 3000/( 1 + IRR) + $ 4000/( 1 + IRR)2 = 0
One way to compute this problem is to use trial and error with the existing answer choices and choose the discount rate that makes the PV of the cash flows closest to 5000.
$ 3000/1.25 + $ 4000/1.252 = 4960.
Alternatively: CF0 = -5000, CF1 =3000, CF2 =4000, CPT IRR =24.3%.