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Dinshaw Company is considering the purchase of a new machine. The invoice price of the machine is $58,027, freight charges are estimated to be $2,910,
Dinshaw Company is considering the purchase of a new machine. The invoice price of the machine is $58,027, freight charges are estimated to be $2,910, and installation costs are expected to be $7,320. The annual cost savings are expected to be $14,660 for 11 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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