Internal rate of return on the investment in the tractor


Question: (Ignore income taxes in this problem.) Bau Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $308,325, would have a useful life of 6 years, and would have no salvage value. The tractor-trailer would be used in the company's hauling business, resulting in additional net cash inflows of $75,000 per year. The internal rate of return on the investment in the tractor-trailer is closest to: (Round "PV Factor" to 3 decimal places.)

Solution Preview :

Prepared by a verified Expert
Finance Basics: Internal rate of return on the investment in the tractor
Reference No:- TGS02046318

Now Priced at $20 (50% Discount)

Recommended (96%)

Rated (4.8/5)