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Kings Department Store is contemplating the purchase of a new machine at a cost of $35,370. The machine will provide $5,200 per year in cash

Kings Department Store is contemplating the purchase of a new machine at a cost of $35,370. The machine will provide $5,200 per year in cash flow for nine years. Kings has a cost of capital of 11 percent. Use Appendix D for an approximate answer but calculate your final answer using the financial calculator method.

a. What is the internal rate of return?

b. Should the project be undertaken?

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