Question: What is the IRR for Machine C over a 4-year project life with the following details: Machine C Initial cost $225,000 Life in years 2

What is the IRR for Machine C over a 4-year project life with the following details:

Machine C

Initial cost $225,000

Life in years 2

Salvage after life 25%

Benefits 1st year $195,000

Costs 1st year $95,800

Inflation 5.50%

All benefits keep increasing every year 6.50% even when a new machine is bought.

A. -2.7%

B. 9.46%

C. 10.9%

D. 11.4%

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