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Genuine Products Inc

Question 65

Multiple Choice

Genuine Products Inc.requires a new machine.Two companies have submitted bids,and you have been assigned the task of choosing one of the machines.Cash flow analysis indicates the following: Genuine Products Inc.requires a new machine.Two companies have submitted bids,and you have been assigned the task of choosing one of the machines.Cash flow analysis indicates the following: What is the internal rate of return for each machine? A) IRR<sub>A</sub> = 16%;IRR<sub>B</sub> = 20% B) IRR<sub>A</sub> = 24%;IRR<sub>B</sub> = 20% C) IRR<sub>A</sub> = 18%;IRR<sub>B</sub> = 16% D) IRR<sub>A</sub> = 18%;IRR<sub>B</sub> = 24% E) IRR<sub>A</sub> = 24%;IRR<sub>B</sub> = 26% What is the internal rate of return for each machine?


A) IRRA = 16%;IRRB = 20%
B) IRRA = 24%;IRRB = 20%
C) IRRA = 18%;IRRB = 16%
D) IRRA = 18%;IRRB = 24%
E) IRRA = 24%;IRRB = 26%

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