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Placher Industries is considering investing in a inventory management system, he new system would cost $150,000. It is expected to generate after tax savings of
Placher Industries is considering investing in a inventory management system, he new system would cost $150,000. It is expected to generate after tax savings of $30.000 per year for six years. The company's cost of capital is 11%. What is the project's IRR? Based on this should Placher implement the new system? 5.47% Accept because IRR > 10. 13.24%. Accept because IRR cost of capital 5.47% Reject because IRR RR
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Management
Authors: Schermerhorn, John, Davidson, Paul, Factor, Aharon, Woods, Peter, Simon, Alan, McBarron, Ellen
6th Asia Pacific Edition
9780730329534
