The Conroy Co

question 65

Multiple Choice

The Conroy Co. wants to purchase a machine for a new product line that costs $138,750. The company's engineering department estimates the machine will last 10 years and provide an annual contribution margin of $25,000. Ignore income taxes. The internal rate of return to the nearest tenth of a percent is:

• A) 12.4%
• B) 11.6%
• C) 13.46%
• D) 12.64%

---

Definitions:

Multinational Disaster Zone

An area that has been severely affected by a natural or man-made disaster, impacting multiple countries or regions.

Steam Engine

A heat engine that performs mechanical work using steam as its working fluid, pioneering the industrial revolution.

Internal Combustion Engine

An engine in which the combustion of a fuel (usually, gasoline, diesel, or natural gas) occurs with an oxidizer (usually air) in a combustion chamber.

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, drastically changing the economy, society, and technology with the introduction of machinery.