View Policies Current Attempt in Progress Carla Vista, Inc. is considering the purchase of a warehouse directly across the street from its manufacturing plant. Carla Vista currently warehouses its inventory in a public warehouse across town. Rent on the warehouse and delivering and picking up inventory cost Carla Vista $56640 per year. The building will cost Carla Vista $531000. Carla Vista will depreciate the building for 20 years. At the end of 20 years, the building will have a $147500 salvage value. Carla Vista's required rate of return is 10%. Click here to view the factor table. Using the present value tables, the building's net present value is (round to the nearest dollar) O $-7850. O $1132800. O $-26871. O $504129. Save for Later Attempts: 0 of 1 used Submit Answer Edward Lewis is the CEO of Lewis Industries. Edward is interested in purchasing new pollution abatement equipment because the current equipment is outdated and not efficient. The controller of the company has identified equipment that costs $129050 and will provide annual cash operating inflows of $35239 for 5 years. The equipment currently being used is 3 years old and could be sold for $2020. Periods Factor Interest rate 6% 5 4.2124 5 3.9927 Type of cash flow PV ordinary annuity PV ordinary annuity PV ordinary annuity PV ordinary annuity PV ordinary annuity 5 3.7908 8% 10% 12% 15% 5 3.6048 5 3.3522 What is the equipment's internal rate of return? O 12% O 8% O 10% O 15%