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A company is considering investing in a new machine that requires a cash payment of $46,289 today. The machine will generate annual cash flows of
A company is considering investing in a new machine that requires a cash payment of $46,289 today. The machine will generate annual cash flows of $19,127 for the next three years. S 26-13 Internal rate of return LO P4 What is the internal rate of return if the company buys this machine? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate actor(s) from the tables provided.) Amount Invested Annual Net Cash Flow = Present Value Factor Internal Rate of Return % Assume the company uses an 9% discount rate. Compute the net present value of this investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) Chart Values are Based on: n = Select Chart Amount PV Factor Present Value Cash Flow Annual cash flow Net present value
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