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Question 2 Corporations required rate of return is 12%. The company is considering the purchase of a new machine that would save $20,000 per year
Question 2 Corporations required rate of return is 12%. The company is considering the purchase of a new machine that would save $20,000 per year in cash operating costs. The machine will cost $128,360 and will have a 10 year useful life with zero salvage value. Straight line depreciation will be used. A. Compute the machines internal rate of return. B. Would you recommend purchase of the machine
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