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Gordon Corporation is considering the acquisition of a new machine that costs $149,040. The machine is expected to have a four-year service life and will
Gordon Corporation is considering the acquisition of a new machine that costs $149,040. The machine is expected to have a four-year service life and will produce annual savings in cash operating costs of $45,000. Gordon evaluates investments by using the internal rate of return and ignores income taxes.
- Compute the machine's internal rate of return.Give your answer in decimal form.Hint: be sure you give the interest ratenotthe factor.
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