Copa Corporation is considering the purchase of a new machine costing $150,000. The machine would generate net cash inflows of $43,690 per year for 5 years. At the end of 5 years, the machine would have no salvage value. Copa's cost of capital is 12 percent. Copa uses straight-line depreciation. The present value factors of annuity of $1.00 for different rates of return are as follows:
$\begin{array}{ccccc}
\underline{\text { Period }} & \underline{12 \%} & \underline{14 \%} & \underline{16 \%} & \underline{18 \%} \
4 & 3.03735 & 2.91371 & 2.79818 & 2.69006 \
5 & 3.60478 & 3.43308 & 3.27429 & 3.12717 \
6 & 4.11141 & 3.88867 & 3.68474 & 3.49760
\end{array}$ The proposal's internal rate of return (rounded to the nearest percent) is:

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The Answer of Copa Corporation is considering the purchase of a new machine costing $150,000. The machine would generate net cash inflows of $43,690 per year for 5 years. At the end of 5 years, the machine would have no salvage value. Copa's cost of capital is 12 percent. Copa uses straight-line depreciation. The present value factors of annuity of $1.00 for different rates of return are as follows:
$\begin{array}{ccccc}
\underline{\text { Period }} & \underline{12 \%} & \underline{14 \%} & \underline{16 \%} & \underline{18 \%} \
4 & 3.03735 & 2.91371 & 2.79818 & 2.69006 \
5 & 3.60478 & 3.43308 & 3.27429 & 3.12717 \
6 & 4.11141 & 3.88867 & 3.68474 & 3.49760
\end{array}$ The proposal's internal rate of return (rounded to the nearest percent) is:

Copa Corporation Is Considering the Purchase of a New Machine