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A company is investing in a solar panel system to reduce its electricity costs. The system requires a cash payment of $125,374.60 today. The system
A company is investing in a solar panel system to reduce its electricity costs. The system requires a cash payment of $125,374.60 today. The system is expected to generate net cash flows of $13,000 per year for the next 35 years. The investment has zero salvage value.
Compute the internal rate of return on this investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
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