Humphrey inc. is considering purchasing equipment costing, Ask an Expert

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Humphrey, Inc. is considering purchasing equipment costing $30,000 with a 6-year useful life. The equipment will provide cost savings of $7,300 and will be depreciated straight-line over its useful life with no salvage value. Humphrey, Inc. requires a 10% rate of return.

Present Value of an Annuity of 1
Period 8% 9% 10% 11% 12% 15%
6 4.623 4.486 4.355 4.231 4.111 3.784

What is the approximate internal rate of return for this investment?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M972555

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