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Brrunno [24]
3 years ago
8

Renfroe Corporation is considering the purchase of a machine that would cost $22,712 and would have a useful life of 5 years. Th

e machine would generate $6,300 of net annual cash inflows per year for each of the 5 years of its life. The internal rate of return on the machine would be closest to: A) 12%. B) 14%. C) 8%. D) 10%.
Business
1 answer:
Dennis_Churaev [7]3 years ago
6 0

Answer:

option (A) 12%

Explanation:

Data provided :

Purchasing cost of the machine = $ 22,712

Useful life of the machine = 5 years

Net annual cash inflow generated per year = $ 6,300

Now,

at for the value for internal rate of return,

the present value of inflow = Present value of the outflow for the 5 years

let the internal rate of return be r%

thus,

$ 22,712 = \frac{6,300}{1.0r^1}+\frac{6,300}{1.0r^2}+\frac{6,300}{1.0r^3}+\frac{6,300}{1.0r^4}+\frac{6,300}{1.0r^5}

on solving the above relation, we get

r ≈ 12%

Hence, option A is correct

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A 4-for- stock split means that each share will become 4.

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Answer:

The answer is <u>"$110 billion".</u>

Explanation:

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<h3>Hello there!</h3>

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<h3>Answer: True</h3>

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If you offered your car as a demonstration to pay off your loan, but you don't pay off the loan, the bank has every right to take the car from you, due to the fact that the car is on collateral.

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anzhelika [568]

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