Bau Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $281,665, would have a useful life of 7 years, and would have no salvage value. The tractor-trailer would be used in the company's hauling business, resulting in additional net cash inflows of $85,000 per year. The internal rate of return on the investment in the tractor-trailer is closest to (Ignore income taxes.):

Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.

Garrison 16e Rechecks 2017-11-11, 2018-09-04

Multiple Choice

• 19%

• 14%

• 16%

• 23%