What is the internal rate of return for Bau Long-Haul, Inc.?
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Question 11: (1 point)
(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.)
15%
14%
12%
11%
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Solution Summary
The solution explains how to calculate the internal rate of return of the investment.
Solution Preview
The IRR is the rate that would make the PV of cash inflows = ...
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