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GAB Manufacturing is evaluating investing in a new metal stamping machine costing $53,443. Ryker estimates that it will realize $13,000 in annual cash inflows for

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GAB Manufacturing is evaluating investing in a new metal stamping machine costing $53,443. Ryker estimates that it will realize $13,000 in annual cash inflows for each year of the machine's 6-year useful life. The internal rate of return (IRR) for the machine is approximately Present Value of $1 Periods 5 6 7 8 6% 0.840 0.792 0.747 0.705 0.665 0.627 ncon 8% 0.794 0.735 0.681 0.630 0.583 0.540 10% 0.751 0.683 0.621 0.564 0.513 0.467 12% 0.712 0.636 0.567 0.507 0.452 0.404 1901 14% 0.675 0.592 0.519 0.456 0.400 0.351 no MA A. 6% OB. 10% O C. 14% OD. 12% 9 0.592 10 0.558 Present Value of Annuity of $1 0.500 0.463 0.424 0.386 0.361 0.322 0.308 0.270 Periods 3 4 5 6 7 8 9 10 6% 2.6730 3.465 4.212 4.917 5.582 6.210 6.802 7360 8% 2.577 3.312 3.993 4.623 5.206 5.747 6.247 6.710 10% 2.487 3.170 3.791 4.355 4.868 5.335 5.759 6.145 12% 2.402 3.037 3.605 4.111 4.564 4968 5.328 5.650 14% 2.322 2.914 3.433 3.889 4.288 4.639 4.946 5.216 A. 6% OB. 10% O C. 14% OD 12%

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