Fabricating Solutions is looking at the financials for a CNC machine. The expected life cycle for the machine is 6 years. The initial projected product design costs are $725,000. Fabricating Solutions typically uses a discount rate of 14% for all new product financials.

-The internal rate of return for the project is
A)Under 14%
B)Between 14% and 17%
C)Between 17% and 20%
D)Between 20% and 25%
E)Over 25%

Question

Fabricating Solutions is looking at the financials for a CNC machine. The expected life cycle for the machine is 6 years. The initial projected product design costs are $725,000. Fabricating Solutions typically uses a discount rate of 14% for all new product financials.
 
-The internal rate of return for the project is
A)Under 14% 
B)Between 14% and 17% 
C)Between 17% and 20% 
D)Between 20% and 25% 
E)Over 25%

Quizplus · Accepted Answer

The Answer of Fabricating Solutions is looking at the financials for a CNC machine. The expected life cycle for the machine is 6 years. The initial projected product design costs are $725,000. Fabricating Solutions typically uses a discount rate of 14% for all new product financials.
 
-The internal rate of return for the project is
A)Under 14% 
B)Between 14% and 17% 
C)Between 17% and 20% 
D)Between 20% and 25% 
E)Over 25%

Fabricating Solutions Is Looking at the Financials for a CNC