A company is considering buying a new piece of machinery that
costs $30,000 and has a salvage value of $8,000 at the end of its
5-year useful life. The machinery nets $5,000 per year in
annual revenues. MARR = 8%. The internal rate of return
(IRR) on this investment is between
A.
4% - 5%
B.
6% - 7%
C.
11% - 12%
D.
13% -14%
E.
2% - 3%