Question
(Ignore income taxes in this problem.) The management of Mazor Corporation is considering the purchase of a machine that would cost $144,144 and would have
(Ignore income taxes in this problem.) The management of Mazor Corporation is considering the purchase of a machine that would cost $144,144 and would have a useful life of 5 years. The machine would have no salvage value. The machine would reduce labor and other operating costs by $39,000 per year. The internal rate of return on the investment in the new machine is closest to:
| A | 14% | |
| B | 13% | |
| C | 12% | |
| D | 11% |
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Accounting
Authors: Carl s. warren, James m. reeve, Philip e. fess
21st Edition
978-0324400205, 324225016, 324188005, 324400209, 9780324225013, 978-0324188004
