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Jordan Manufacturing Company has an opportunity to purchase some technologically advanced equipment that will reduce the company's cash outflow for operating expenses by $ 1
Jordan Manufacturing Company has an opportunity to purchase some technologically advanced equipment that will reduce the company's cash outflow for operating expenses by $ per year. The cost of the equipment is $ Jordan expects it to have a year useful life and a zero salvage value. The company has established an investment opportunity hurdle rate of percent and uses the straightline method for depreciation. PV of $ and PVA of $ Note: Use appropriate factors from the tables provided. Required a Calculate the internal rate of return of the investment opportunity. Note: Do not round intermediate calculations. b Indicate whether the investment opportunity should be accepted. tablea Internal rate of return,
Jordan Manufacturing Company has an opportunity to purchase some technologically advanced equipment that will reduce the company's cash outflow for operating expenses by $ per year. The cost of the equipment is $ Jordan expects it to have a year useful life and a zero salvage value. The company has established an investment opportunity hurdle rate of percent and uses the straightline method for depreciation. PV of $ and PVA of $
Note: Use appropriate factors from the tables provided.
Required
a Calculate the internal rate of return of the investment opportunity.
Note: Do not round intermediate calculations.
b Indicate whether the investment opportunity should be accepted.
tablea Internal rate of return,
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