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%

Brian has just finished college. he wants to set up a small business to make and sell fireworks. he registers his company and acquires a license from the government. he finds that most of his competitors are selling fireworks at an extremely low price. he would like to make more money, so he decides to innovate and develop better fireworks. he sells his fireworks at a higher price, and they are a huge hit with the customers. after a few years, he earns enough profit to set up a bigger fireworks factory that complies with the government’s health and safety regulations. he even starts exporting fireworks overseas. which type of economy does this scenario describe?