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Please give answer and explanation on how the problem is done and solved! Thank you! IRR 25. Urbana Corporation is considering the purchase of a

Please give answer and explanation on how the problem is done and solved! Thank you!

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IRR 25. Urbana Corporation is considering the purchase of a new machine costing $152,000. The machine would generate net cash inflows of $46,426 per year for 5 years. At the end of 5 years, the machine would have no salvage value. Urbana's cost of capital is 12 percent. Urbana uses straight-line depreciation. The present value factors of annuity of $1.00 for different rates of return are as follows: Period 12% 14% 16% 18% 4 3.037 2.914 2.7982690 5 3.605 3.433 3.274 3.127 6 4.111 3.889 3.685 3.498 The proposal's internal rate of return (rounded to the nearest percent) is: A) 12 percent 3) 14 percent 0} 16 percent D} 18 percent

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