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The manager of an electronics manufacturing plant was asked to approve the purchase of a surface mounted placement (SMP) machine having an initial cost of

The manager of an electronics manufacturing plant was asked to approve the purchase of a surface mounted placement (SMP) machine having an initial cost of $500,000 in order to reduce annual operating and maintenance costs by $92,500 per year. At the end of the 10-year planning horizon, it was estimated that the SMP machine would be worth $50,000. What is the internal rate of return for this investment

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