Question
JT Engineering wants to buy a machine that costs $360,000, has an 8-year life, and has a $12,000 salvage value. Annual inflows are $120,000 and
JT Engineering wants to buy a machine that costs $360,000, has an 8-year life, and has a $12,000 salvage value. Annual inflows are $120,000 and annual outflows are $86,000 (including depreciation). What is the annual rate of return on this purchase?
- A
- :
- 18.28%
- B
- :
- 22.86%
- C
- :
- 28.33%
- D
- :
- 18.88%
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Managerial Accounting for Managers
Authors: Eric Noreen, Peter Brewer, Ray Garrison
3rd edition
78025427, 978-0077736460, 007773646X, 978-0078025426
