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1. A new equipment has been proposed to increase the productivity of certain manual welding operations. The investment cost is 25 million and a residual

1. A new equipment has been proposed to increase the productivity of certain manual welding operations. The investment cost is 25 million and a residual value of 5 million at the end of the tool life is 5 years. With the installation of the equipment, productivity will increase by 8 million per year after deducting the additional production. Calculate the IRR of the equipment? Is this investment good with a MARR of 20%?

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