Calgary Cabs is considering buying 10 new taxi cabs for a total cost of $310,000. After the purchase, total cash flows will improve by $80,000. the new cabs are expected to be in service for six years. What is the internal rate of return for this investment proposal?

Question

Quizplus · Accepted Answer

The correct answer is A because the internal rate of return for this investment proposal is 8%. This can be calculated using a financial calculator or by using a trial and error approach.

Calgary Cabs Is Considering Buying 10 New Taxi Cabs for a Total