George William buys a machine for his business. The machine costs $150,000. George estimates
that the machine can produce $40,000 cash inflow per year for the next five years. George's cost
of capital is 12 percent.
What is the approximate internal rate of return?
A) 8.95% B) 10.43% C) 9.43% D) 11.59%
B
You might also like to view...
If bonds were initially issued at a premium, the carrying value of the bonds on the issuer's books will
a. decrease as the bonds approach their maturity date. b. increase as the bonds approach their maturity date. c. remain constant throughout the bonds' life. d. fluctuate throughout the bonds' life.
Which of the following product characteristics refers to the degree to which the innovation appears superior to existing products?
A) compatibility B) divisibility C) communicability D) relative advantage E) complexity
Which of the following is not among the first five steps in the accounting cycle?
a. Record transactions in journals. b. Record closing entries. c. Adjust the general ledger accounts. d. Post entries to general ledger accounts.
Influence is a component of the implementation of power in ethical decision making. Which of the following is not an ethical use of influence?
a. Negotiating in an ethical manner b. Adjusting through mutual agreement the viewpoint of another c. Misleading others about your future intentions d. Using nonverbal methods to change the viewpoint through, for example, physical evidence