Question: 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

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

Using only the information in the table above, what would the IRR be for an investment that cost $500 in period 0 and was sold for $750 in period 5?

(A) Between 6% and 7%

(B) Between 7% and 8%

(C) Between 8% and 9%

(D) Between 9% and 10%

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