question archive Texas Corporation is considering the purchase of new presentation equipment at a cost of $150,000
Texas Corporation is considering the purchase of new presentation equipment at a cost of $150,000
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Texas Corporation is considering the purchase of new presentation equipment at a cost of $150,000. An expected useful life of the equipment is 10 years. And an estimated salvage value of the equipment is equal to zero. The equipment is expected to produce annual net cash inflows of $35,000 each year for 10 years. This firm uses a discount rate at 16%. The firm's assets are depreciated by the straight-line method. Between what two percents does the internal rate of retum (IRR) of the equipment fall? (SHOW YOUR COMPUTATIONS.) (point)
