Use the Following Information for Questions 106-108 $\text { Present Value of an Annuity of } 1$

question 48

Multiple Choice

Use the following information for questions 106-108.
Cleaners, Inc. is considering purchasing equipment costing $60,000 with a 6-year useful life. The equipment will provide cost savings of $14,600 and will be depreciated straight-line over its useful life with no salvage value. Cleaners requires a 10% rate of return. $\text { Present Value of an Annuity of } 1$
$\begin{array}{ll}\text { Periods } &8\%& 9 \% & 10 \% & 11 \%& 12 \%&15\%\\5&4.623&4.486&4.355&4.231&4.111&3.784\end{array}$

-What is the approximate internal rate of return for this investment?

• A) 9%
• B) 10%
• C) 11%
• D) 12%

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Definitions:

Narcolepsy

A sleep disorder characterized by excessive daytime sleepiness, sleep attacks, and sudden loss of muscle tone.

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A sleep disorder where a person walks or performs other activities while asleep.

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A sleep disorder characterized by the acting out of dreams during the REM (Rapid Eye Movement) stage of sleep.

Consolidation Theory

A theory suggesting that memories become more stable in the brain over time through a process of consolidation.