Ataxpayer has 80% business use of their vehicle and maintains a mileage log with all required information. o a taxpayer has five or more cars used at the same time (a fleet of vehicles) in his business. oa vehicle, in subsequent years, when standard mileage was not used the first year the vehicle was placed in service.

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%