The Following Information Is Available on a New Piece of Equipment

question 46

Multiple Choice

The following information is available on a new piece of equipment:
$\begin{array}{|l|r|}\hline \text { Cost of the Equipment } & \$ 21,720 \\\hline \text { Annual Cash Inflows } & 5,000 \\\hline \text { Internal Rate of Return } & 16 \% \\\hline\end{array}$
$$\begin{array} { | l | l| } \hline \text { Required Rate of Return } & 10 \%\\\hline\end{array}$$
What is approximately the life of the equipment? (Ignore income taxes in this problem.)

• A) 4.3 years.
• B) 6.0 years.
• C) 8.0 years.
• D) It is impossible to determine from the data given.

---

Definitions:

Environmental Change

Any alteration in the conditions of an environment, due to natural processes or human activities, that can affect the organisms living within it.

Hardy-Weinberg Equilibrium

A rule that indicates the frequencies of alleles and genotypes in a population will stay unchanged over generations if there are no other factors driving evolution.

Allele Frequencies

The relative frequency of different variants (alleles) of a particular gene in a population, which can change over time due to various evolutionary pressures.

Genotype Distribution

The frequency and arrangement of genetic variations and alleles in a population.