Wilson Corp

question 102

Multiple Choice

Wilson Corp.is considering the purchase of a new piece of equipment.The cost savings from the equipment would result in an annual increase in net income after tax of $50,000.The equipment will have an initial cost of $600,000 and have an 8-year life.The salvage value of the equipment is estimated to be $100,000.If the hurdle rate is 10%,what is the internal rate of return? (Future Value of $1,Present Value of $1,Future Value Annuity of $1,Present Value Annuity of $1. ) (Use appropriate factor from the PV tables.Round your final answer to the nearest dollar amount. )

• A)Less than zero
• B)Between zero and 10%
• C)Between 10% and 15%
• D)More than 15%

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Definitions:

Personal Unhappiness

A state of dissatisfaction or sadness with one's personal situation or life circumstances.

Self-Awareness

The awareness of one's own personality, emotions, intentions, and wishes.

Incompetence

A lack of necessary skills or abilities to perform a task or duty effectively.

Reality

The state of things as they actually exist, as opposed to an idealistic or notional idea of them.