Answer:
$339,600
Explanation:
The internal rate of return is the relationship between the price of the equipment and their yearly cash flow. the IRR makes the net present value equal to zero thus, it makes the present value of the yearly cashflow equal to the cost:
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 60,000.00
time 12
rate 0.14
[tex]60000 \times \frac{1-(1+0.14)^{-12} }{0.14} = PV\\[/tex]
PV $339,617.5275
From the given option:
$ 339,600 is the closest option.
