Jones Company is considering the purchase of a new machine for $57,000.The machine would generate an annual cash flow of $17,411 for five years.At the end of five years,the machine would have no salvage value.The company's cost of capital is 12 percent.The company uses straight-line depreciation. What is the internal rate of return for the machine rounded to the nearest percent?

Question

Quizplus · Accepted Answer

The Answer of Jones Company is considering the purchase of a new machine for $57,000.The machine would generate an annual cash flow of $17,411 for five years.At the end of five years,the machine would have no salvage value.The company's cost of capital is 12 percent.The company uses straight-line depreciation. What is the internal rate of return for the machine rounded to the nearest percent?

Jones Company Is Considering the Purchase of a New Machine