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Smith company recently purchased a new machine to replace an old machine for $339,013.20 with a useful life of 10 years. The net additional cash

  1. Smith company recently purchased a new machine to replace an old machine for $339,013.20 with a useful life of 10 years. The net additional cash inflows will be $60,000/year. Old machine had no disposal value. What is the internal-rate of return?

    12%

    16%

    20%

    24%

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