pt 1

pt 2

Which statement is true when calculating the internal rate of return: O The required rate of return is needed. The internal rate of return is needed. The required rate of return is not needed. O The initial investment is not needed A company with $800,000 in operating assets is considering purchasing a machine that costs $300,000 with an estimated salvage value of $40,000. The acquisition is expected to reduce operating costs by $55,000 in year 1 $60,000 in year 2 $65,000 in year 3 $70,000 in year 4 $75,000 in year 5 $80,000 in year 6 How long is the payback period? O 5 years 3 months 6 years 3 months O 5 years 4 months O 6 years 4 months