Question: rl enterprises wants to buy a machine that costs 420000...
Question details
RL Enterprises wants to buy a machine that costs $420,000, has a 20year life, and has no salvage value. Annual inflows are $210,000 and annual outflows are $160,000. If RL uses the straightline method to compute depreciation, what is the annual rate of return on this purchase?

A :
13.81%

B :
9.34%

C :
18.13%

D :
6.90%