Miller manufacturing company is considering the purchase of equipment. the equipment would cost $61,445.67 and is expected to generate annual cash inflows of $10,000 over its 10 year useful life. based on this information, the internal rate of return for this investment opportunity is (use the tables in the chapter 16 appendix.) multiple choice

a. 12%.
b. 10%
c. 8%
d. 14%

b. 10% 

Explanation:

The IRR is the discount rate that equates the after tax cash flows from an investment to the amount invested.

The IRR can be found using a financial calculator:

Cash flow for year zero = $-61,445.67

Cash flow each year from year one to ten = $10,000

IRR = 10%

I hope my answer helps you

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi