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A clothing manufacturer anticipates that the market for a certain popular T-shirt will continue to be strong for a few years. The manufacturer, accordingly, is
A clothing manufacturer anticipates that the market for a certain popular T-shirt will continue to be strong for a few years. The manufacturer, accordingly, is considering the purchase of equipment that would generate $100,000 in cash flow starting in 1 year and continuing for the next two consecutive years (for a total of three years). The machine itself costs $250,000 immediately, and initial expenses also include a one-time fee of $710 for a maintenance contract and $7,000 for setup and labor. What is the project's IRR?
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