(Ignore income taxes in this problem.) The following information is available on

Question

(Ignore income taxes in this problem.) The following information is available on a new piece of equipment:


Cost of the equipment................................. $21,720
Salvage value.............................................. $0
Annual Cash inflows..................................... $5,000
Internal rate of return................................. 16%
Required rate of return................................ 10%

The life of the equipment is approximately:

a. 6 years
b. 4.3 years
c. 8 years
d. It is impossible to determine from the data given.

Explanation / Answer

b

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.