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Hayner Limos, Inc., is considering the purchase of a limousine that would cost $149,868, would have a useful life of 9 years, and would have
Hayner Limos, Inc., is considering the purchase of a limousine that would cost $149,868, would have a useful life of 9 years, and would have no salvage value. The limousine would bring in cash inflows of $36,000 per year in excess of its cash operating costs. Required: Determine the internal rate of return on the investment in the new limousine. Show your work.
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