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1. Zeebo company is considering investing $425,000 for new equipment. The new equipment is much more efficient than the current machine Zeebo is using. The
1. Zeebo company is considering investing $425,000 for new equipment. The new equipment is much more efficient than the current machine Zeebo is using. The machine will save $105,000/year in labor and other costs but will require annual maintenance costs of $13,000/year. The machine is expected to last 6 years and will have no salvage value. Estimate the project's Internal Rate of Return and Payback Period.
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