You buy a new piece of equipment for $30,978, and you receive a cash inflow of $3,900 per year for 12 years. use appendix d for an approximate answer but calculate your final answer using the financial calculator method. what is the internal rate of return? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)

x = 7%

Explanation:

given data:

price of equipment is given as $30 978

cash inflow is given a $3900/ year for a period of 12 years

Let internal rate of return is x %

we know , at IRR, inflow value of PV = outflow value of PV

from using financial calculator x value will be

x = 7%

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

24 years, i believe is the correct answer.