October Inc $\quad$ $\quad$ $\quad$ $\quad$ $\quad$

October Inc. is considering purchasing equipment costing $46300 with a 6-year useful life. The equipment will provide cost savings of $10950 and will be depreciated straight-line over its useful life with no salvage value. October Inc. requires a 10% rate of return. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Present Value of an Annuity of } 1$
$\begin{array}{lllllll}\text { Period }&8\%&9\%&10\%&11\%&12\%&15\%\\6 & 4.623 & 4.486 & 4.355 & 4.231 & 4.111 & 3.784\end{array}$ What is the approximate internal rate of return for this investment?

A) 9%
B) 10%
C) 11%
D) 12%

Correct Answer:

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