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) 14%
B) 17%
C) 20%
D) 22.13%
E) 25%