Cindy sold her interest in a partnership for $20,000 cash when her outside basis was $5,000. She was relieved of her $25,000 share of partnership liabilities. What is Cindy's realized value from the sale of her partnership interest?

Laws corporation is considering the purchase of a machine costing $16,000. estimated cash savings from using the new machine are $4,120 per year. the machine will have no salvage value at the end of its useful life of six years and the required rate of return for laws corporation is 12%. the machine's internal rate of return is closest to (ignore income taxes) (a) 12% (b) 14% (c) 16% (d) 18%