Question
The following data pertains to an investment proposal: Required investment $400,000 Annual cost savings $105,700 Projected life of investment 6 years Projected salvage value $0
The following data pertains to an investment proposal:
Required investment $400,000
Annual cost savings $105,700
Projected life of investment 6 years
Projected salvage value $0
Required rate of return 12%
Ignoring income taxes, the internal rate of return on this investment is closest to
A12% B15% C25% D30%
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Introduction to Managerial Accounting
Authors: Peter C. Brewer, Ray H Garrison, Eric Noreen
8th edition
1259917061, 978-1259917066
