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Figure 14-8

Question 121

Multiple Choice

Figure 14-8. Present value of an Annuity of $1 in Arrears
Figure 14-8. Present value of an Annuity of $1 in Arrears Refer to Figure 14-8.Lucas Company is considering a project with an initial investment of $530,250 in new equipment that will yield annual net cash flows of $95,000,and will be depreciated at $75,750 per year over its seven year life.What is the internal rate of return? A) 8% B) 6% C) 12% D) 10% E) 14% Refer to Figure 14-8.Lucas Company is considering a project with an initial investment of $530,250 in new equipment that will yield annual net cash flows of $95,000,and will be depreciated at $75,750 per year over its seven year life.What is the internal rate of return?


A) 8%
B) 6%
C) 12%
D) 10%
E) 14%

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