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11. X Company is considering replacing one of its molding machines in order to save operating costs. Operating costs with the current machine are $50,000

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11. X Company is considering replacing one of its molding machines in order to save operating costs. Operating costs with the current machine are $50,000 per year. Operating costs with the new machine are $30,000. The new machine will cost $76,000 and will last for 5 years. The current machine will also last for 5 more years. What is the internal rate of return for the replace alternative? a. 9% b. 10% c. 11% d. 12% 12. X Company is considering a new project costing S140,000. Incremental profits will be $30,000 for 6 years. The approximate internal rate for the project is a. 5%. b. 6% c. 7% d. 8%

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