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Donald Martin is the CEO of Martin Industries. Donald is interested in purchasing new pollution...

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Accounting

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Donald Martin is the CEO of Martin Industries. Donald is interested in purchasing new pollution abatement equipment because the current equipment is outdated and not efficient. The controller of the company has identified equipment that costs $87450 and will provide annual cash operating inflows of $23510 for 5 years. The equipment currently being used is 3 years old and could be sold for $2700. Periods 5 5 Type of cash flow PV ordinary annuity PV ordinary annuity PV ordinary annuity PV ordinary annuity PV ordinary annuity Interest rate 6% 8% 10% 12% 15% Factor 4.2124 3.9927 3.7908 3.6048 3.3522 5 5 5 What is the equipment's internal rate of return? 10% 8% O 15% O 12%

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