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A Machine Costs $25,000;it Is Expected to Generate Annual Cash

Question 31

Multiple Choice

A machine costs $25,000;it is expected to generate annual cash revenues of $8,000 and annual cash expenses of $2,000 for five years.The required rate of return is 12%.Which of the following statements about the machine's internal rate of return is true? A) The internal rate of return is greater than 12%. B) The internal rate of return is between 10% and 12%. C) The internal rate of return is less than 10%. D) The internal rate of return must be greater than 15%. E) There is insufficient information to make any judgment about the internal rate of return.
A machine costs $25,000;it is expected to generate annual cash revenues of $8,000 and annual cash expenses of $2,000 for five years.The required rate of return is 12%.Which of the following statements about the machine's internal rate of return is true? A) The internal rate of return is greater than 12%. B) The internal rate of return is between 10% and 12%. C) The internal rate of return is less than 10%. D) The internal rate of return must be greater than 15%. E) There is insufficient information to make any judgment about the internal rate of return.
A machine costs $25,000;it is expected to generate annual cash revenues of $8,000 and annual cash expenses of $2,000 for five years.The required rate of return is 12%.Which of the following statements about the machine's internal rate of return is true? A) The internal rate of return is greater than 12%. B) The internal rate of return is between 10% and 12%. C) The internal rate of return is less than 10%. D) The internal rate of return must be greater than 15%. E) There is insufficient information to make any judgment about the internal rate of return.
A machine costs $25,000;it is expected to generate annual cash revenues of $8,000 and annual cash expenses of $2,000 for five years.The required rate of return is 12%.Which of the following statements about the machine's internal rate of return is true? A) The internal rate of return is greater than 12%. B) The internal rate of return is between 10% and 12%. C) The internal rate of return is less than 10%. D) The internal rate of return must be greater than 15%. E) There is insufficient information to make any judgment about the internal rate of return.
A machine costs $25,000;it is expected to generate annual cash revenues of $8,000 and annual cash expenses of $2,000 for five years.The required rate of return is 12%.Which of the following statements about the machine's internal rate of return is true?


A) The internal rate of return is greater than 12%.
B) The internal rate of return is between 10% and 12%.
C) The internal rate of return is less than 10%.
D) The internal rate of return must be greater than 15%.
E) There is insufficient information to make any judgment about the internal rate of return.

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