A Company Purchase A Piece Of Manufacturing Equipment For An Additional Income The Expected Income Is 3 500 Per Semest 1 (9.58 KiB) Viewed 11 times
Not sure if 12% or 6.02% please explain
A company purchase a piece of manufacturing equipment for an additional income. The expected income is $3,500 per semester, Its useful life is 9 years. Expenses are estimated to be $500 semiannually. If the purchase price is $34,000 and there is a salvage value of $4,500, what is the prospective rate of return (IRR) of this investment? The MARR is 10% compounded semiannually Oa IRR-7% Ob. IRR - 12% IRR 6,02% O d. IRR = 6 %
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