Money market mutual funds, banks, and reserves. money market mutual funds typically invest in government securities and other financial instruments that can be easily bought and sold. they are not subject to reserve requirements and, in fact, hold minimal reserves. banks, on the other hand, make loans to businesses for investment purposes.

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%