(Ignore Income Taxes in This Problem)The Management of Mazor Corporation

Multiple Choice

(Ignore income taxes in this problem) The management of Mazor Corporation is considering the purchase of a machine that would cost $144,144 and would have a useful life of 5 years.The machine would have no salvage value.The machine would reduce labor and other operating costs by $39,000 per year.The internal rate of return on the investment in the new machine is closest to:

A) 14%
B) 13%
C) 12%
D) 11%