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Amaro Hospital, a not-for-profit institution not subject to income taxes, is considering the purchase of new equipment costing $25,000 to achieve cash savings of $6,250
Amaro Hospital, a not-for-profit institution not subject to income taxes, is considering the purchase of new equipment costing $25,000 to achieve cash savings of $6,250 per year in operating costs. The estimated useful life is 10 years, with no residual value. The minimum expected return is 14%.
What is the internal rate of return(%)? (Note: Use Excel's IRR function to calculate the answer.)
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