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Applecross Dental Services is investigating expanding its operations by acquiring additional teeth cleaning...

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Accounting

Applecross Dental Services is investigating expanding its operations by acquiring additional teeth cleaning equipment. The equipment would cost $150,000 and management has estimated that it would result in net cash inflows of $14,900 per year. The equipment would have a 15-year useful life with an expected salvage value of $13,500.(Ignore income taxes.)
Required:
Compute the equipment's IRR. (Hint: Use Microsoft Excel to calculate the discount factor(s).)(Do not round intermediate calculations and round your final answer to 1 decimal place.)
Internal rate of return
2-a. Assume that instead of $14,900, the salvage value in 15 years for the new equipment will be $0. Compute the IRR under this new assumption. (Do not round intermediate calculations and round your final answer to 1 decimal place.)
Internal rate of return
%
2-b. This part of the question is not part of your Connect assignment.
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