Duhl Long Haul, Inc , is considering the purchase of a tractor trailer that would cost $126,175, would have a useful life of 5 years, and would have no salvage value The tractor trailer would be used in the company 's hauling business, resulting in additional net cash inflows of $35,000 per year Th...

Duhl Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $126,175, would have a

Question:

Duhl Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $126,175, would have a useful life of 5 years, and would have no . The tractor-trailer would be used in the company's hauling business, resulting in additional net cash inflows of $35,000 per year. The on the investment in the tractor-trailer is closest to:
Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment... Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...