Laws Corporation is considering the purchase of a machine costing $16,000. Estimated cash savings from using the new machine are $4,120 per year. The machine will have no salvage value at the end of its useful life of six years and the required rate of return for Laws Corporation is 12%. The machine's internal rate of return is closest to (Ignore income taxes.):Refer to Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.

A. 18%
B. 12%
C. 16%
D. 14%


Answer: D

Business

You might also like to view...

Deleting the question from the survey is an alternative for the treatment of unsatisfactory responses

Indicate whether the statement is true or false

Business

The book value of a plant asset is defined as:

a) replacement cost minus accumulated depreciation. b) current sales value minus historical cost. c) historical cost minus accumulated deprecation. d) historical cost minus estimated residual value.

Business

Standards are more widely used for nonmanufacturing expenses than for manufacturing costs

Indicate whether the statement is true or false

Business

Companies may match employee contributions to a 401(k) with cash or company stock.

Answer the following statement true (T) or false (F)

Business