Luong Machines Company Is Evaluating an Investment of $1,100,000 Which

question 64

Multiple Choice

Luong Machines Company is evaluating an investment of $1,100,000 which will yield net cash inflows of $197,062 per year for 7 years with no residual value.What is the internal rate of return? Present value of ordinary annuity of $1:
$\begin{array}{|c|c|c|c|c|} \hline& 5 \% & 6 \% & 7 \% & 8 \% \\\hline 1 & 0.952 & 0.943 & 0.935 & 0.926 \\\hline 2 & 1.859 & 1.833 & 1.808 & 1.783 \\\hline 3 & 2.723 & 2.673 & 2.624 & 2.577 \\\hline 4 & 3.546 & 3.465 & 3.387 & 3.312 \\\hline 5 & 4.329 & 4.212 & 4.100 & 3.993 \\\hline 6 & 5.076 & 4.917 & 4.767 & 4.623 \\\hline 7 & 5.786 & 5.582 & 5.389 & 5.206 \\\hline 8 & 6.463 & 6.21 & 5.971 & 5.747 \\\hline 9 & 7.108 & 6.802 & 6.515 & 6.247 \\\hline 10 & 7.722 & 7.36 & 7.024 & 6.71 \\\hline\end{array}$

• A) 5%
• B) 6%
• C) 7%
• D) 8%

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Definitions:

Performance Problems

Issues or complications that hinder an employee's ability to fulfill job requirements effectively.

Compliance Training

Training provided to employees to ensure they understand and adhere to laws, regulations, and company policies affecting their work.

Performance Problems

Issues related to an individual's or organization's inability to meet established goals, standards, or expectations.

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A systematic method to identify and evaluate the gap between current conditions and desired outcomes to define necessary interventions.