Question: X Company must decide whether to continue using its current equipment or replace it with new, more efficient equipment. The following information is available for

X Company must decide whether to continue using
X Company must decide whether to continue using its current equipment or replace it with new, more efficient equipment. The following information is available for the current and new equipment: Current equipment Current sales value $14,000 Final sales value 3,920 Operating costs 67,300 New equipment Purchase cost $164,000 Final sales value 3,920 Operating costs 35,830 The current and new equipment will last for 6 years. If X Company replaces the current equipment, what is the approximate internal rate of return? OA: 0.03 OB: 0.04 OC: 0.05 OD: 0.06 OE: 0.07 OF: 0.08

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