A company purchase a piece of manufacturing equipment for an additional income. The expected income is $3,300 per semester. Its useful life is 9 years. Expenses are estimated to be $500 semiannually. If the purchase price is $44,000 and there is a salvage value of $4,500, what is the prospective rate of return (IRR) of this investment? The MARR is 10% compounded semiannually. Oa. IRR 6.02% semiannual Ob. IRR=4% semiannual Oc. IRR = 396 semiannual Od. IRR 6.23% semiannual =
A company purchase a piece of manufacturing equipment for an additional income. The expected income is $3,300 per semester. Its useful life is 9 years. Expenses are estimated to be $500 semiannually. If the purchase price is $44,000 and there is a salvage value of $4,500, what is the prospective rate of return (IRR) of this investment? The MARR is 10% compounded semiannually. Oa. IRR 6.02% semiannual Ob. IRR=4% semiannual Oc. IRR = 396 semiannual Od. IRR 6.23% semiannual =
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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