Locil Corporation recently purchased a new machine for $307,890 with a eight-year life. The old equipment has a remaining life of eight years and no disposal value at the time of replacement. Net cash flows will be $90,000 per year. What is the internal rate of return?
A) 24%
B) 29%
C) 33%
D) 37%

Question

Quizplus · Accepted Answer

$307,890 = $90,000F
F = 3.421
Chart criteria for 8 years is 3.421 = 24%

Locil Corporation Recently Purchased a New Machine for $307,890 with a Eight-Year