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Genuine Products Inc

Question 72

Multiple Choice

Genuine Products Inc.requires a new machine.Two companies have submitted bids, and you have been assigned the task of choosing one of the machines.Cash flow analysis indicates the following: Genuine Products Inc.requires a new machine.Two companies have submitted bids, and you have been assigned the task of choosing one of the machines.Cash flow analysis indicates the following: What is the internal rate of return for each machine? A) IRR<sub>A</sub> = 16%; IRR<sub>B</sub> = 20% B) IRR<sub>A</sub> = 24%; IRR<sub>B</sub> = 20% C) IRR<sub>A</sub> = 18%; IRR<sub>B</sub> = 16% D) IRR<sub>A</sub> = 18%; IRR<sub>B</sub> = 24% E) IRR<sub>A</sub> = 24%; IRR<sub>B</sub> = 26% What is the internal rate of return for each machine?


A) IRRA = 16%; IRRB = 20%
B) IRRA = 24%; IRRB = 20%
C) IRRA = 18%; IRRB = 16%
D) IRRA = 18%; IRRB = 24%
E) IRRA = 24%; IRRB = 26%

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