Question
Community Health Center (CHC) is considering spending $50,000 today for a blood analyzer. The annual cash profits from the machine will be $7,000 for each
Community Health Center (CHC) is considering spending $50,000 today for a blood analyzer. The annual cash profits from the machine will be $7,000 for each of the 7 years of its useful life. The board of directors wants to pursue this investment, because they think the $49,000 CHC will receive is close to the $50,000 cost. What is the IRR on the investment?what is wrong with the board logic?
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Forensic Accounting And Fraud Examination
Authors: Paul Barnes
1st Edition
1118454138, 978-1118454152
