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A capital investment of $150,000 can be made in a project that will produce a uniform annual revenue of $49,600 for 7 years and then
A capital investment of $150,000 can be made in a project that will produce a uniform annual revenue of $49,600 for 7 years and then have a salvage (market) value of $25,000. Annual Expenses will be $22,500. The company is willing to accept any project that will earn at least 9% per year on all invested capital. Determine whether this project is acceptable by using the IRR method
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