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A firm seeks an internal rate of return of at least 7 . 9 % . Would it make sense for the firm to spend
A firm seeks an internal rate of return of at least Would it make sense for the firm to spend $ today on a piece of equipment that will allow it to bring in $ of additional revenue in each of the next two years?
Yes, because the rate of return exceeds
Yes, because the rate of return is exactly the desired
No because the rate of return is less than
It is impossible to determine with the information given.
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