(Ignore income taxes in this problem.) Veys Limos, Inc., is considering the purchase of a limousine that would cost $155,776, would have a useful life of 7 years, and would have no salvage value. The limousine would bring in cash inflows of $32,000 per year in excess of its cash operating costs.
Required:
Determine the internal rate of return on the investment in the new limousine. Show your work!

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The Answer of (Ignore income taxes in this problem.) Veys Limos, Inc., is considering the purchase of a limousine that would cost $155,776, would have a useful life of 7 years, and would have no salvage value. The limousine would bring in cash inflows of $32,000 per year in excess of its cash operating costs.
Required:
Determine the internal rate of return on the investment in the new limousine. Show your work!

(Ignore Income Taxes in This Problem