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: Commissions Insurance Revenues $ 112,400 Less operating expenses: $ 15,000 5,000 48,000 30,000 98,000 $ 14,400 Depreciation Maintenance Net operating income Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. The internal rate of return for this investment is closest to

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: Commissions Insurance Revenues $ 112,400 Less operating expenses: $ 15,000 5,000 48,000 30,000 98,000 $ 14,400 Depreciation Maintenance Net operating income Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. The internal rate of return for this investment is closest to