question 46

Flexsteel Industries manufactures furniture for the retail, contract, and recreational vehicle furniture markets. Flexsteel is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $252,000. The equipment will have an initial cost of $1,303,000 and have an 8 -year life. There is no salvage value for the equipment. If the hurdle rate is 10%, what is the internal rate of return? Ignore income taxes. (Future Value of $1, Present Value of $1, Future Value Annuity of \$1, Present Value Annuity of \$1.) (Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount.) Multiple Choice Between 6% and 8% less than zero Greater than 10% Between 8% and 10%