(Present Value Tables Are Required

question 69

Multiple Choice

(Present value tables are required. ) Vino Winery is considering the purchase of a state-of-the-art bottling machine.The new machine will cost $28,250 and will have a useful life of 10 years.The new machine will provide net cash savings of $5,000 per year.What is the internal rate of return (IRR) for the new bottling machine?

• A)8%
• B)10%
• C)12%
• D)14%

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