Question
A machine costs $500,000 and would produce cash flows of $150,000 per year for the first two years, $180,000 per year for the next two
A machine costs $500,000 and would produce cash flows of $150,000 per year for the first two years, $180,000 per year for the next two years, and $80,000 in the final year. If the required return is 15%, what is the IRR of buying the new machine?
A. 15.43%
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B. 6.85%
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C. 17.80%
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D. 19.34%
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
