A company is contemplating investing in a new piece of manufacturing machinery. The amount to...
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A company is contemplating investing in a new piece of manufacturing machinery. The amount to be invested is $210,000. The present value of the future cash flows is $225,000. The companys desired rate of return used in the present value calculations was 12%. Which of the following statements is true? Select one: a. The project should not be accepted because the net present value is negative. b. The internal rate of return on the project is less than 12%. c. The internal rate of return on the project is more than 12%. d. The internal rate of return on the project is equal to 12%.
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