The internal rate of return of 14 whatnbsp was the annual

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Ludington, Inc. purchased a new machine on January 1 for $350,000. The machine is expected to have a useful life of 8 years and no salvage value. Straight-line depreciation is to be used. The internal rate of return on the project is 14%. The present value of the annual cash inflows generated by the machine was calculated to be $371,120 using the internal rate of return of 14%. What  was the annual cash inflow that was used in the calculation of the present value?

A) $350,000 x 0.351

B) $350,000 ÷ 4.639

C) $371,120 x 0.351

D) $371,120 ÷ 4.639

Reference no: EM13567090

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