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A machine costs $50,000 (paid out at the beginning of year 1), and generates yearend net cash inflows of $8,834 per year for 12 years
A machine costs $50,000 (paid out at the beginning of year 1), and generates yearend net cash inflows of $8,834 per year for 12 years (this is the useful life of the machine). The machine has zero salvage value. The company uses straight-line depreciation. Required: A) What is the internal rate of return? B) What is the net present value, using a discount rate of 10%? C) What is the accounting rate of return?
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