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A company is considering purchasing equipment costing $85,000. The equipment is expected to reduce costs from year 1 to 4 by $20,000, year 5 to
A company is considering purchasing equipment costing $85,000. The equipment is expected to reduce costs from year 1 to 4 by $20,000, year 5 to 8 by $10,000, and in year 9 by $1,000. In year 9, the equipment can be sold at a salvage value of $15,000.
Calculate the internal rate of return (IRR) for this proposal.
The internal rate of return is nothing%. (Round to the nearest tenth as needed.)
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