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Sunland, Inc. is considering purchasing equipment costing $40000 with a 5-year useful life. The equipment...

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Accounting

Sunland, Inc. is considering purchasing equipment costing $40000 with a 5-year useful life. The equipment will provide cost savings of $11400 and will be depreciated straight-line over its useful life with no salvage value. Sunland Inc. requires a 9% rate of return. What is the approximate internal rate of return for this investment? Present Value of an Annuity of 1 Period 5 7% 4.100 8%

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