Analyze if the investment in new equipment is profitable based on the information given below. Cost of new equipment $66,000 Yearly expected cash flows to be received $20,000 Expected life 4 years Minimum desired rate of return 10% Present Value of an Annuity of $1 at 10% for 4 years 3.170
a. The internal rate of return is greater than 10% and is not profitable.
b. The internal rate of return is greater than 10% and is profitable.
c. The internal rate of return is less than 10% and is profitable.
d. The internal rate of return is less than 10% and is not profitable.
