Assume that a company is considering buying a new piece of equipment for $240,000 that...

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Accounting

Assume that a company is considering buying a new piece of equipment for $240,000 that would
have a useful life of five years and no salvage value. The equipment would generate the following
estimated annual revenues and expenses:
Revenues $ 112,400
Less operating expenses:
Commissions $ 15,000
Insurance 5,000
Depreciation 48,000
Maintenance 30,00098,000
Net operating income $ 14,400
Click here to view and , to determine the appropriate discount factor(s)
using the tables provided.
The internal rate of return for this investment is closest to:

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