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if possible, i need the financial calculator breakdown and how you get answers Riverview Company is evaluating the proposed acquisition of a new production machine.
if possible, i need the financial calculator breakdown and how you get answers
Riverview Company is evaluating the proposed acquisition of a new production machine. The machine's base price is $200,000, and installation costs would amount to $28,000. Also, $10,000 in net working capital would be required at installation. The machine will be depreciated for 3 years using simplified straight line depreciation. The machine would save the firm $110,000 per year in operating costs. The firm is planning to keep the machine in place for 5 years. At the end of the fifth year, the machine will be sold for $20,000. Riverview has a cost of capital of 12% and a marginal tax rate of 34%. What is the IRR of the project? 31.3% 9.5% 14.1% 28.2% 19.7% Step by Step Solution
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