A company has to decide between two machines that do the same job but have different lives.
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A company has to decide between two machines that do the same job but have different lives.
Net Cash Flow
Machine A Machine B
—$40,000 —$55,000
—$15,000 —$10,000
—$15,000 —$10,000
—$15,000 —$10,000
—$10,000
Which machine should the company buy, at an interest rate of 10%, based on the principle of internal rate of return?
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