10 years. The head of this savings because replacing the labor Chapter 14 551 head of the MHS grounds crew estimates it would save $3.000 per year. He figures because just one of the present maintenance crew would be driving the tractor the labor of several men now using small household-type lawn mowers. Compute the al rate of return for this proposed acquisition. internal rate cionment Exercise 13-4: Computing an Internal Rate of Return Assignment Exercise or Whitten has decided to purchase equipment that has a cost of $60,000 and will produce a pretax net cash inflow of $30,000 per year over its estimated useful life of six years. The equip- ment will have no salvage value and will be depreciated by the straight-line method. The tax rate is 50%. Determine Dr. Whitten's approximate after-tax internal rate of return. Example 13E: Payback Period Review the chapter text and follow the Doctor Green detailed example of payback period computation. Practice Exercise 13-V: Payback ill result not a request by the Emergency Room department tradejn. Its useful life would