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An equipment sales company offers your facility a complete turn - key installation of a motor retrofit for $ 5 0 , 0 0 0

An equipment sales company offers your facility a complete "turn

-

key" installation of a motor retrofit for $

50, 000,

and says it will save you $

9, 225

per year. If the system lifetime is

12

years, what rate of return

(

IRR

)

will your facility make if the estimated savings is correct?

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