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Maxcy Limos, Incorporated, is considering the purchase of a limousine that would cost $187,785, would have a useful life of 9 years, and would
Maxcy Limos, Incorporated, is considering the purchase of a limousine that would cost $187,785, would have a useful life of 9 years, and would have no salvage value. The limousine would bring in cash inflows of $45,180 per year in excess of its cash operating costs. (Ignore income taxes.) Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. Required: Determine the internal rate of return on the investment in the new limousine. Note: Do not round intermediate calculations and round your answer to 2 decimal places. Internal rate of return %
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