Problem related to salvage value

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Reference no: EM13127870

Pare Long-Haul, Inc. is considering the purchase of a tractor-trailer that would cost $104,520, would have a useful life of 6 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 $24,000 per year. The internal rate of return on the investment in the tractor-trailer is closest to:

A. 10%

B. 8%

C. 13%

D. 11%

Reference no: EM13127870

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