(Ignore income taxes in this problem.) Z Company has gathered the following data on a proposed investment project:

(Ignore income taxes in this problem.) Z Company has gathered the following data on a proposed investment project:

	Investment in equipment..................................	$150,000
	Annual cash flows...........................................	$40,000
	Salvage value of equipment.............................	$0
	Life of the equipment.......................................	10 years
	Required rate of return....................................	10%

The company uses straight-line depreciation on all equipment.

Required:

(ii) Calculate the IRR

A.

23% and 24%

B.

24% and 25%

C.

is exactly 24%

D.

none of the above

The company uses straight-line depreciation on all equipment.

Required:

(ii) Calculate the IRR

A.

23% and 24%

B.

24% and 25%

C.

is exactly 24%

D.

none of the above