Clayton Corporation recently purchased a new machine for $307,890 with an eight-year life. The old equipment has a remaining life of eight years and no disposal value at the time of replacement. Net cash flows will be $90,000 per year. What is the internal rate of return? a)    24%   b)    29% c)    33% d)    None of the above

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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2.    Clayton Corporation recently purchased a new machine for $307,890 with an eight-year life. The old equipment has a remaining life of eight years and no disposal value at the time of replacement. Net cash flows will be $90,000 per year. What is the internal rate of return?

a)    24%  
b)    29%
c)    33%
d)    None of the above

 

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