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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
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 4 5 6 8% 0.735 0.681 0.630 0.583 0.540 0.500 0.463 10% 0.683 0.621 0.564 0.513 0.467 0.424 0.386 12% 0.636 0.567 0.507 0.452 0.404 0.361 0.322 14% 0.592 0.519 0.456 0.400 0.351 0.308 0.270 7 8 9 10 na...II-1... --A--...1..-TA A. 14% B. 8% C. 12% D. 10% O 0.040 0.500 0.463 9 0.467 0.424 0.386 0.404 0.361 0.35 0.308 0.270 10 0.322 Present Value of Annuity of $1 Periods 8% 4 3.312 5 3.993 6 4.623 7 5.206 8 5.747 9 6.247 10 6.710 10% 3.170 3.791 4.355 4.868 5.335 5.759 6.145 12% 3.037 3.605 4.111 4.564 4.968 5.328 5.650 14% 2.914 3.433 3.889 4.288 4.639 4.946 5.216
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