Answer Happy

Delicate Pieces Inc. is considering the purchase of a special blow-molding machine that would cost $82, 182 and would have a useful life of 8 years. The machine would generate $14,300 of net annual cash inflows per year for each of the 8 years of its life. The internal rate of return on the machine would be closest to: Present Value of $1 Periods 3 4 5 6 7 8 9 10 6% 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 8% 0.794 0.735 0.681 0.630 0.583 0.540 0.500 0.463 10% 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 12% 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 14% 0.675 0.592 0.519 0.456 0.400 0.351 0.308 0.270 Present Value of Annuity of $1 Periods 6% 3 2.673 4 4 3.465 S 4.212 6 4.917 7 5.582 8 6.210 9 6.B02 10 7.360 8% 2.577 3.312 3.993 4.623 5.206 5.747 6.247 6.710 10% 2.487 3.170 3.791 4.355 4.868 5.335 5.759 6.145 12% 2.402 3.037 3.605 4.111 4.564 4.968 5.328 5.650 14% 2.322 2.914 3.433 3.889 4.288 4.639 4.946 5.216 O A 10% OB. 8% O C. 12% OD. 14%