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dxpayne dxpayne
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6 years ago
Soda Manufacturing Company provides vending machines for soft drink manufacturers. The company has been investigating a new piece of machinery for its production department. The old equipment has a remaining life of 1 year and no sales value. The new equipment has a value of $52,650 with a three-year life. The expected additional cash inflows are $25,000 per year, end of year payments.
What is the internal rate of return?
A) 24 percent
B) 20 percent
C) 16 percent
D) 12 percent
E) 8 percent
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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pachopacho
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6 years ago
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