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Southwest Airlines will only invest in equipment that has an internal rate of return of 15%. Should the airline buy equipment costing $800,000 if it
Southwest Airlines will only invest in equipment that has an internal rate of return of 15%. Should the airline buy equipment costing $800,000 if it projects the expenditure will generate the cash inflows of $235,000 per year for 5 years (assumed received at the end of the year).
Question 8 options:
No as IRR is 13.55%
None of these answers
Yes as IRR is 16.34%
No as IRR is 14.35%
Yes as IRR is 15.75%
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