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Amatra Inc. has the opportunity to invest in new equipment that will cost $1,130,044. The net cash inflows for 10 years equal $200,000 per year.
Amatra Inc. has the opportunity to invest in new equipment that will cost $1,130,044. The net cash inflows for 10 years equal $200,000 per year. (Round discount factor to five decimal places.) What is the internal rate of return for the investment? A partial table of the present value of an annuity of $1 in arrears is as follows:
Year | 2% | 4% | 6% | 8% | 10% | 12% | 14% | 16% |
10 | 8.98259 | 8.11090 | 7.36009 | 6.71008 | 6.14457 | 5.65022 | 5.21612 | 4.83323 |
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