Concord, Inc. is considering purchasing equipment costing $23000 with a 6-year useful life. The equipment will...

 

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Concord, Inc. is considering purchasing equipment costing $23000 with a 6-year useful life. The equipment will provide cost savings of $5500 and will be depreciated straight-line over its useful life with no salvage value. Concord Inc. requires a 7% rate of return. What is the approximate internal rate of return for this investment? Present Value of an Annuity of 1 Period 5% 6% 7% 8% 9% 12% 6 5.076 4.917 4.767 4.623 4.486 4.111 Concord, Inc. is considering purchasing equipment costing $23000 with a 6-year useful life. The equipment will provide cost savings of $5500 and will be depreciated straight-line over its useful life with no salvage value. Concord Inc. requires a 7% rate of return. What is the approximate internal rate of return for this investment? Present Value of an Annuity of 1 Period 5% 6% 7% 8% 9% 12% 6 5.076 4.917 4.767 4.623 4.486 4.111