(Ignore income taxes in this problem. )The Baker Company purchased a piece of equipment with the following expected results: The initial cost of the equipment was:

Question

(Ignore income taxes in this problem. )The Baker Company purchased a piece of equipment with the following expected results:  The initial cost of the equipment was:

Quizplus · Accepted Answer

The internal rate of return is the rate of return at which the net present value of the project is zero.
 11eaa48f_7b07_3564_9e4a_2baaf15cb2a5_TB2485_00 -X + $180,250 = $0
X = $180,250

(Ignore Income Taxes in This Problem