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    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 Preview

    The IRR is the rate that would make the PV of cash inflows = ...

    Solution Summary

    The solution explains how to calculate the internal rate of return of the investment.

    $2.19

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