Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Freedom Company is considering the purchase of a machine that would cost $15,141 and would have a useful life of 5 years. The machine
Freedom Company is considering the purchase of a machine that would cost $15,141 and would have a useful life of 5 years. The machine would generate $4,200 of net annual cash inflows per year for each of the 5 years of its life. The internal rate of return on the machine would be closest to: Present Value of $1 Periods 8% 10% 12% 14% 4 0.735 0.683 0.636 0.592 5 0.681 0.621 0.567 0.519 6 0.630 0.564 0.507 0.456 7 0.583 0.513 0.452 0.400 8 0.540 0.467 0.404 0.351 9 0.500 0.424 0.361 0.308 10 0.463 0.386 0.322 0.270 Present Value of Annuity of $1 Periods 8% 10% 12% 14% 4 3.312 3.170 3.037 2.914 5 3.993 3.791 3.605 3.433 6 4.623 4.355 4.111 3.889 7 5.208 4.868 4.564 4.288 8 5.747 5.335 4.968 4.639 g 6.247 5.759 5.328 4.946 10 6.710 6.145 5.650 5.216 A. 12% B. 14% OC. 8% D. 10%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started