How much is the internal rate of return


Problem

Stoney Acres buys a piece of equipment for $61,400 that has a useful life of 4 years. The equipment will generate operating cash flows of $18,550 per year and will have no salvage value at the end of its life. The income tax rate is 30%. Straight-line depreciation is used. How much is the internal rate of return?

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Managerial Accounting: How much is the internal rate of return
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