A company is considering buying a new piece of machinery that costs $$20,000$ and has a salvage value of $$9,000$ at the end of its $5-$year useful life. The machinery nets $$5,000$ per year in annual revenues. MARR $=8\%.$ The internal rate of return $($IRR$)$ on this investment is between

A$.14\%-15\%$

B$.6\%-7\%$

C$.2\%-3\%$

D$.17\%-18\%$

E$.11\%-12\%$

 

Answer rating: 100% (QA)

The correct answer is B 67 Heres how we can determine the IRR Method 1 Internal Rate of Return Formu... View the full answer