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Analysis of a machine indicates this it has a cost of $5,375,000. This machine is expected to produce cash inflows of $1,825,000 in year 1;
Analysis of a machine indicates this it has a cost of $5,375,000. This machine is expected to produce cash inflows of $1,825,000 in year 1; $1,775,000 in year 2; $1,630,000 in year 3; $1,585,000 in year 4; $1,650,000 in year 5. What is the machines IRR? Is this an acceptable project if the firms required return (cost of capital) 16%? Why / why not
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