Question
(Ignore income taxes in this problem.) Given the following data: Cost of equipment.............. $55,750 Annual cash inflows.......... $10,000 Internal rate of return......... 16% The life
(Ignore income taxes in this problem.) Given the following data:
Cost of equipment..............
$55,750
Annual cash inflows..........
$10,000
Internal rate of return.........
16%
The life of the equipment must be:
A)it is impossible to determine from the data given
B)15 years
C)12.5 years
D)5.75 years
Why is it B?
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Financial and Managerial Accounting
Authors: Horngren, Harrison, Oliver
3rd Edition
978-0132497992, 132913771, 132497972, 132497999, 9780132913775, 978-0132497978
