Find what is the approximate internal rate of return

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Reference no: EM132778915

Sheridan, Inc. is considering purchasing equipment costing $40000 with a 6-year useful life. The equipment will provide annual cost savings of $9730 and will be depreciated straight-line over its useful life with no salvage value. Sheridan 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

Problem 1: What is the approximate internal rate of return for this investment?

Reference no: EM132778915

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