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%

---

Definitions:

True Partnerships

Collaborative relationships based on mutual respect, transparency, and shared goals, often between individuals, organizations, or communities.

Toddlers

Young children, typically those between one and three years old, who are just beginning to walk and talk.

Trust

The firm belief in the reliability, truth, ability, or strength of someone or something, essential for building healthy relationships.

Mothers

Female parents who may or may not be the biological parent but performs the role of caring for and raising a child.