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Milling, Inc. is considering a new milling machine. The machine costs $125,000. They can received a $15,000 trade in allowance for the old milling machine.
Milling, Inc. is considering a new milling machine. The machine costs $125,000. They can received a $15,000 trade in allowance for the old milling machine. The new machine can be used to generate $35,500 in annual revenue. Cash operation expenses are estimated to be $14,500 per year. The machine has a useful life of 10 years and annual depreciation expense would be $9,500. The company has a 10% minimum rate of return. What would be the internal rate of return discount factor for the new machine? Group of answer choices 9.565 10.869 5.238 5.952
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