Fabricating Solutions Is Looking at the Financials for a CNC

Multiple Choice

Fabricating Solutions is looking at the financials for a CNC machine. The expected life cycle for the machine is 6 years. The initial projected product design costs are $725,000. Fabricating Solutions typically uses a discount rate of 14% for all new product financials.

-The internal rate of return for the project is

A) Under 14%
B) Between 14% and 17%
C) Between 17% and 20%
D) Between 20% and 25%
E) Over 25%