Question
Dinshaw Company is considering the purchase of a new machine. The invoice price of the machine is $77,163, freight charges are estimated to be $2,640,
Dinshaw Company is considering the purchase of a new machine. The invoice price of the machine is $77,163, freight charges are estimated to be $2,640, and installation costs are expected to be $7,240. The annual cost savings are expected to be $14,780 for 10 years. The firm requires a 21% rate of return. Ignore income taxes. What is the internal rate of return on this investment?
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College Accounting A Practical Approach
Authors: Jeffrey Slater
12th edition
978-0132772068, 133468100, 013277206X, 9780133468106, 978-0133133233
