Investment in the new machine

Reference no: EM13135216

The management of Boie Corporation is considering the purchase of a machine that would cost $330,980 and would have a useful life of 6 years. The machine would have no salvage value. The machine would reduce labor and other operating costs by $76,000 per year. The internal rate of return on the investment in the new machine is closest to:

A. 11%

B. 10%

C. 12%

D. 7%

Reference no: EM13135216

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