Rams, Inc. has invested in a machine with a cost of $37,164 and annual cost savings of $6,000. The discount rate is 8%, and the machine's internal rate of return is 12%. Ignore income taxes. The estimated life of the machine is:
A) 6.2 years
B) 8 years
C) 12 years
D) Cannot be determined

Question

Quizplus · Accepted Answer

The Answer of Rams, Inc. has invested in a machine with a cost of $37,164 and annual cost savings of $6,000. The discount rate is 8%, and the machine's internal rate of return is 12%. Ignore income taxes. The estimated life of the machine is:
A) 6.2 years
B) 8 years
C) 12 years
D) Cannot be determined

Rams, Inc Has Invested in a Machine with a Cost of of $37,164