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(Ignore income taxes in this problem.) Your Company is considering the purchase of equipment that would cost $168,030. It would have a useful life of

(Ignore income taxes in this problem.) Your Company is considering the purchase of equipment that would cost $168,030. It would have a useful life of 6 years,and no salvage value. The purchase would result in additional net cash inflows of $30,000 per year. What is the internal rate of return on this investment?

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6%

3%

5%

4%

2%

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