Financial data related to a piece of equipment are provided in the table below. Initial cost $18,000 Annual cost $1,500 Annual benefit $5,500 Salvage value $2,000 Useful life (years) 12 What is the internal rate of return (irr)? O 18% O 20% O 22% O 24%

Financial data related to a piece of equipment are provided in the table below. Initial cost $18,000 Annual cost $1,500 Annual benefit $5,500 Salvage value $2,000 Useful life (years) 12 What is the internal rate of return (irr)? O 18% O 20% O 22% O 24%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Financial data related to a piece of equipment are provided in the table below.
Initial cost
$18,000
Annual cost
$1,500
Annual benefit
$5,500
Salvage value
$2,000
Useful life (years)_
12
What is the internal rate of return (irr)?
18%
O20%
O 22%
24%

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