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The manager of the creative design department of a toy manufacturer is interested in purchasing a three- dimensional printer to use in designing prototypes for
The manager of the creative design department of a toy manufacturer is interested in purchasing a three- dimensional printer to use in designing prototypes for new toys. The cost-is $80,000, but it will reduce labour and other costs by $25,000 per year. At the end of the printer's five-year useful life, it will have no scrap value. The company's required rate of return is 8%. Required: Page 630 Ignore income taxes. 1. Determine the net present value of the investment in the printer. 2. What is the printer's internal rate of return
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