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ABC corporation plans to purchase a piece of factory equipment for Php 300,000 with a scrap value of Php10,000 at the end of its life
ABC corporation plans to purchase a piece of factory equipment for Php 300,000 with a scrap value of Php10,000 at the end of its life . The equipment would only last three years, but it is expected to generate Php150,000 of additional annual profit. Factory equipment is expected to have a return of 15% Will ABC corporation purchase the equipment if they use IRR in evaluating? (10 points)
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