Budgeted fixed overhead, accounting homework help
Budgeted fixed overhead, accounting homework help
Birch Company is considering the purchase of some equipment that would cost $119,790, would have a useful life of 5 years, and would have no salvage value. The equipment would be used in the company’s manufacturing plant, resulting in additional net cash inflows of $30,000 per year. The internal rate of return on the investment in the equipment is closest to:
| A. |
8% |
|
| B. |
10% |
|
| C. |
14% |
|
| D. |
12% |
