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Krauth Company purchased a machine for $162,600. The machine has a life of twelve years with no salvage value. It is expected that the machine
Krauth Company purchased a machine for $162,600. The machine has a life of twelve years with no salvage value. It is expected that the machine will generate annual net cash inflows of $30,000 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: O 9% o 10% O 12% O 14% O 15% 0 16%
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