Question
Locil Corporation recently purchased a new machine for $306,425 with a seven−year life. The old equipment...
Locil Corporation recently purchased a new machine for $306,425
with a seven−year life. The old equipment has a remaining life of seven years and no disposal value at the time of replacement. Net cash flows will be $85,000
per year. What is the internal rate of return?
A. 29%
B. 33%
C. 25%
D. 20%
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