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A bakery shop is considering expanding its operations. The expansion will require new equipment costing $20,000 that would be depreciated on a straight-line basis to

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A bakery shop is considering expanding its operations. The expansion will require new equipment costing $20,000 that would be depreciated on a straight-line basis to a zero balance over the four-year life of the project. The project requires $10,000 initially for net working capital, all of which will be recouped at the end of the project. The projected operating cash flow is $10,000 a year. What is the internal rate of return of this project? 19.15%25.39%21.11%29.10%

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