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20 minutes Ageist Corporation distributes agricultural equipment. An electronically controlled crop-sprayer project would require an investment of $10 million in assets and would produce an
20 minutes Ageist Corporation distributes agricultural equipment. An electronically controlled crop-sprayer project would require an investment of $10 million in assets and would produce an annual net benefit of $1.8 million over a service life of eight years. When the project terminates, the net proceeds from the sale of the assets would be $1 million.
(a) Calculate the IRR on this investment by using the interpolation method. (b) If Ageist's MARR is known to be 8%, is this investment justifiable?
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