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Chinchilla Company is considering the purchase of a new machine for $57,000. The machine would generate an annual cash flow of $18,228 for five years. At the end of five years, the machine would have no salvage value. The company's cost of capital is 12 percent. The company uses straight-line depreciation with no mid-year convention. What is the internal rate of return for the machine rounded to the nearest percent, assuming no taxes are paid?
Accumulated Comprehensive Income
The total of all net income and other comprehensive income items that have been accumulated over the life of a company.
Net Income
The total profit or loss a company generates from its operations, after subtracting all expenses, taxes, and costs.
Balance Sheet
A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.
Total Assets
The sum of all assets owned by an entity, including both current and non-current assets, representing the total resources available for use in operations.
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