Bau Long-Haul, Inc

question 135

Multiple Choice

Bau Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $281,656, would have a useful life of 7 years, and would have no salvage value. The tractor-trailer would be used in the company's hauling business, resulting in additional net cash inflows of $76,000 per year. The internal rate of return on the investment in the tractor-trailer is closest to (Ignore income taxes.) : Use Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using the tables provided.

• A) 19%
• B) 18%
• C) 21%
• D) 16%

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Definitions:

Campaign Contributions

Financial donations given to political candidates, parties, or campaigns to support their activities and efforts towards election.

Superfund

A federal government program designed to fund the cleanup of sites contaminated with hazardous substances and pollutants.

Environmental Pollution

The contamination of the physical and natural environment due to the introduction of harmful materials, leading to adverse effects on wildlife and human health.

Unsafe Products

Goods and items that can pose dangers to consumers due to their hazardous nature.