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Jones Company is considering the purchase of a new machine for $57,000. The machine would generate...

Jones Company is considering the purchase of a new machine for $57,000. The machine would generate an annual cash flow of $17,411 for 5 years. At the end of five years, the machine would have no salvage value. The company's cost of capital is 12%. The company uses straight-line depreciation.

What is the internal rate of return for the machine rounded to the nearest percent?

a.

16%
b.

12%
c.

18%
d.

14%
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