Should the company make this investment?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Benson Corporation is considering an investment in equipment that would cost $50,000 and provide annual
A. Yes, since the internal rate of return is less than the company's required rate of return.
B. No, since the internal rate of return is less than the company's required rate of return.
C. Yes since the internal rate of return is more than the company's required rate of return.
D. The answer cannot be determined.
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