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A. 8% B. 10% C. 6% D. 12% Delicate Pieces Inc. is considering the purchase of a special blow - molding machine that would cost
A.
8%
B.
10%
C.
6%
D.
12%
Delicate Pieces Inc. is considering the purchase of a special blow - molding machine that would cost $43,313 and would have a useful life of 4 years. The machine would generate $12,500 of net annual cash inflows per year for each of the 4 years of its life. The internal rate of return on the machine would be closest to: Present Value of $1 Periods3456789106%0.8400.7920.7470.7050.6650.6270.5920.5588%0.7940.7350.6810.6300.5830.5400.5000.46310%0.7510.6830.6210.5640.5130.4670.4240.38612%0.7120.6360.5670.5070.4520.4040.3610.32214%0.6750.5920.5190.4560.4000.3510.3080.270 Present Value of Annuity of $1 Periods3456789106%2.6733.4654.2124.9175.5826.2106.8027.3608%2.5773.3123.9934.6235.2065.7476.2476.71010%2.4873.1703.7914.3554.8685.3355.7596.14512%2.4023.0373.6054.1114.5644.9685.3285.65014%2.3222.9143.4333.8894.2884.6394.9465.216 Delicate Pieces Inc. is considering the purchase of a special blow - molding machine that would cost $43,313 and would have a useful life of 4 years. The machine would generate $12,500 of net annual cash inflows per year for each of the 4 years of its life. The internal rate of return on the machine would be closest to: Present Value of $1 Periods3456789106%0.8400.7920.7470.7050.6650.6270.5920.5588%0.7940.7350.6810.6300.5830.5400.5000.46310%0.7510.6830.6210.5640.5130.4670.4240.38612%0.7120.6360.5670.5070.4520.4040.3610.32214%0.6750.5920.5190.4560.4000.3510.3080.270 Present Value of Annuity of $1 Periods3456789106%2.6733.4654.2124.9175.5826.2106.8027.3608%2.5773.3123.9934.6235.2065.7476.2476.71010%2.4873.1703.7914.3554.8685.3355.7596.14512%2.4023.0373.6054.1114.5644.9685.3285.65014%2.3222.9143.4333.8894.2884.6394.9465.216Step by Step Solution
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