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Iso Corporation is considering the purchase of new presentation equipment at a cost of P150,000....

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Accounting

Iso Corporation is considering the purchase of new presentation equipment at a cost of P150,000. The equipment has an estimated useful life of 10 years with an expected salvage value of zero. The equipment is expected to generate net cash inflows of P35,000 per year in each of the 10 years. Iso's discount rate is 16%. Iso uses the straight-line method of depreciation for its assets. Between what two percents does the internal rate of return of the presentation of equipment fall?

a.

5% and 6%

b.

8% and 10%

c.

14% and 16%

d.

18% and 20%

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