Bau Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $367,402, 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 $80,500 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 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using the tables provided.

Noreen_5e_Rechecks_2019_10_16

Multiple Choice