Bau Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $363,510, 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 $90,000 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

Garrison_16e_Rechecks_2019_10_12

Multiple Choice

• 16%

• 15%

• 18%

• 13%