2 Moore Inc. is considering purchasing equipmentcosting $60,000 with a 6-year useful life. Theequipment will provide cost savings of $13,375and will be depreciated straight-line over itsuseful life with no salvage value. Moore requiresa 10% rate of return.Annuity of 1Period12%O 11%12%8%O 10%15%64.231 4.111 3.7849%9%12Present Value of anWhat is the approximate internal rate of returnfor this investment?10%4.623 4.486 4.35511%

It is the rate at which the present value of cash inflows and the present value of cash outflows are…

Answered: What is the approximate internal rate…

Business

Accounting

What is the approximate internal rate of return for this investment? O 11% O 12% 10% CO 9%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Moore Inc. is considering purchasing equipment
costing $60,000 with a 6-year useful life. The
equipment will provide cost savings of $13,375
and will be depreciated straight-line over its
useful life with no salvage value. Moore requires
a 10% rate of return.
Annuity of 1
Period
12%
O 11%
12%
8%
O 10%
15%
6
4.231 4.111 3.784
9%
9%
12
Present Value of an
What is the approximate internal rate of return
for this investment?
10%
4.623 4.486 4.355
11%

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