George William buys a machine for his business. The machine costs $150,000. George estimates

that the machine can produce $40,000 cash inflow per year for the next five years. George's cost
of capital is 12 percent.

What is the approximate internal rate of return?
A) 8.95% B) 10.43% C) 9.43% D) 11.59%

B

Business

You might also like to view...

Adjusting entries that are made to reflect differences between the actual and recorded value of an asset or a change in accounting principle are called

A) reconciliations. B) revaluations. C) estimates. D) accruals.

Business

If fixed costs are $1,500,000, the unit selling price is $250, and the unit variable costs are $130, what is the amount of sales required to realize an operating income of $200,000?

A) 14,166 units B) 12,500 units C) 16,000 units D) 11,538 units

Business