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The management of Favreau Corporation is considering the purchase of a machine that would cost $310, 464 and would have a useful life of 5
The management of Favreau Corporation is considering the purchase of a machine that would cost $310, 464 and would have a useful life of 5 years. The machine would have no salvage value. The machine would reduce labor and other operating costs by $84,000 per year. The internal rate of return on the investment in the new machine is closest to: 13% 11% 12% 14%
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