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Acme has been offered a contract from Systems Co. In exchange for receiving a $120,000 advance from Systems, Acme must supply $50,000 in services each
Acme has been offered a contract from Systems Co. In exchange for receiving a $120,000 advance from Systems, Acme must supply $50,000 in services each year for 3 years. Find the IRR of the deal. If ACME has a cost of capital of 10%, should Acme take the deal? Explain.
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