Krauth Company purchased a machine for $162,600. The machine has a life of twelve years...
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Accounting
Krauth Company purchased a machine for $162,600. The machine has a life of twelve years with no salvage value. It is expected that the machine will generate annual net cash inflows of $30,000 per year over its useful life. Assume Krauth Company employs a cost of capital of 10% on all capital investment projects.
The internal rate of return (IRR) on the machine is closest to:
Group of answer choices
9%
10%
12%
14%
15%
16%
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