The Comil Corporation recently purchased a new machine for its factory operations at a cost of $390,875.The investment is expected to generate $125,000 in annual cash flows for a period of five years.The required rate of return is 12%.The old machine has a remaining life of five years.The new machine is expected to have zero value at the end of the five-year period.The disposal value of the old machine at the time of replacement is zero.What is the internal rate of return?
A) 15%
B) 16%
C) 17%
D) 18%

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The Answer of The Comil Corporation recently purchased a new machine for its factory operations at a cost of $390,875.The investment is expected to generate $125,000 in annual cash flows for a period of five years.The required rate of return is 12%.The old machine has a remaining life of five years.The new machine is expected to have zero value at the end of the five-year period.The disposal value of the old machine at the time of replacement is zero.What is the internal rate of return?
A) 15%
B) 16%
C) 17%
D) 18%

The Comil Corporation Recently Purchased a New Machine for Its