Bau Long-Haul, Inc

Accounting Oct 21, 2020

Bau Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $387,006, would have a useful life of 7 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 $79,500 per year. The internal rate of return on the investment in the tractor-trailer is closest to (Ignore income taxes.):

Multiple Choice

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Correct option is 1). 10%

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