Cass Publishing is considering the purchase of a used printing press costing $90,240. The printing press would generate a net cash inflow of $37,572 a year for 3 years. At the end of 3 years, the press would have no salvage value. The company's cost of capital is 10 percent. The company uses straight-line depreciation. The present value factors of an annuity of $1.00 for different rates of return are as follows:

	Cost of Capital
Period	8%	10%	12%	14%	16%
2	1.78326	1.73554	1.69005	1.64666	1.60523
3	2.57710	2.48685	2.40183	2.32163	2.24589
4	3.31213	3.16987	3.03735	2.91371	2.79818

The investments internal rate of return (rounded to the nearest percent) is:

Select one:

a. 12 percent

b. 10 percent

c. 14 percent

d. 16 percent

PreviousSave AnswersNext