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Ping Inc Is Considering an Investment in Automated Equipment for the the Manufacturing

Question 61

Multiple Choice

Ping Inc. is considering an investment in automated equipment for the manufacturing process. The equipment will cost $210,000, have a useful life of five years, and generate after tax cash flows of $70,000 per year. What is the approximate internal rate of return?


A) 14%
B) 16%
C) 18%
D) 20%

Correct Answer:

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