What is the annual rate of return on this purchase

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Question - JT Engineering wants to buy a machine that costs $360,000, has an 8-year life, and has a $12,000 salvage value. Annual inflows are $120,000 and annual outflows are $86,000 (including depreciation). What is the annual rate of return on this purchase?

A: 18.28%

B: 22.86%

C: 28.33%

D: 18.88%

Reference no: EM132520568

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