Locil Corporation Recently Purchased a New Machine for $307,890 with a Eight-Year

question 123

Multiple Choice

Locil Corporation recently purchased a new machine for $307,890 with a eight-year life. The old equipment has a remaining life of eight years and no disposal value at the time of replacement. Net cash flows will be $90,000 per year. What is the internal rate of return?

• A) 24%
• B) 29%
• C) 33%
• D) 37%

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