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Overland Corporation has gathered the following data on a proposed investment project: Investment required in equipment $ 150,000 Annual cash inflows $40,000 Salvage value of
Overland Corporation has gathered the following data on a proposed investment project: Investment required in equipment $ 150,000 Annual cash inflows $40,000 Salvage value of equipment $0 Life of the investment 10 years Required rate of return 10% The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year expect for the initial investment. The internal rate of return on the investment is closest to
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