Question
40. The following data pertains to an investment proposal: Required equipment investment $124,000 Annual cost savings $52,000 Projected life of investment 4 years Projected salvage
40. The following data pertains to an investment proposal:
Required equipment investment $124,000
Annual cost savings $52,000
Projected life of investment 4 years
Projected salvage value $0
Required rate of return 8%
The income tax rate is 28%. To which amount is the internal rate of return on this investment closest?
A. 12.5%
B. less than 6%
C. 25%
D. 80%
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Operational Auditing A Complete Guide
Authors: Gerardus Blokdyk
2019 Edition
0655515879, 978-0655515876
