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Apply the Concept A firm with a cost of capital of 10 percent is considering a new computer-aided design (CAD) system that costs $720,000 and
Apply the Concept A firm with a cost of capital of 10 percent is considering a new computer-aided design (CAD) system that costs $720,000 and will produce net cash inflows of $299,700 at the end of each year for the next three years. Required: 1. The discount factor associated with the IRR for the project (round to three decimal places) : 2. IRR for the CAD system = 12 percent 3. The CAD system should be accepted because the IRR is greater than the required rate of return
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