(Ignore Income Taxes in This Problem

question 19

Multiple Choice

(Ignore income taxes in this problem. ) Mongon Roofing is considering the purchase of a crane that would cost $40,224,would have a useful life of 5 years,and would have no salvage value.The use of the crane would result in labor savings of $12,000 per year.The internal rate of return on the investment in the crane is closest to:

• A)17%
• B)14%
• C)15%
• D)18%

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Definitions:

Enthymeme

A shortened syllogism or rhetorical argument that leaves one premise implied, often used in persuasive speech.

Premise

A foundational assertion or premise leading to further deductions or outcomes as logical conclusions.

Enthymeme

A logical argument in which one premise is not explicitly stated.

Premise

A statement in an argument that is believed to be true and from which a conclusion is drawn.