QUESTION

# (Ignore income taxes in this problem.) Given the following data: Cost of equipment. $55,750 Annual cash inflows.$10,000 Internal rate of return.

Internal rate of return.........

16%

The life of the equipment must be:

A)     it is impossible to determine from the data given

B)     15 years

C)     12.5 years

D)     5.75 years

Why is it B?