Soda manufacturing company provides vending machines for soft-drink manufacturers. the company has been investigating a new piece of machinery for its production department. the old equipment has a remaining life of four years and the new equipment has a value of $91,110 with a four-year life. the expected additional cash inflows are $30,000 per year. what is the internal rate of return? a) 12% b) 16% c) 10% d) 8%

Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.