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Krauth Company purchased a machine for $117,000. The machine has a life of seven years with no salvage value. It is expected that the machine
Krauth Company purchased a machine for $117,000. The machine has a life of seven years with no salvage value. It is expected that the machine will generate annual net cash inflows of $26,000 per year over its useful life. Assume Krauth Company employs a cost of capital of 10% on all capital investment projects. The internal rate of return (IRR) on the machine is closest to: 6% 8% 9% 10% 12% 15%
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