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Corporation's required rate of return is 12%. The company is considering the purchase of a new machine that will save $20,000 per year in cash
Corporation's required rate of return is 12%. The company is considering the purchase of a new machine that will save $20,000 per year in cash operating costs. The machine will cost $128,360 and will have a 10-year useful life with zero salvage value. Straight-line depreciation will be used. (Ignore income taxes.)
A)Using the tables provided, compute the machine's internal rate of return.
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