Question
The RST Corp. is considering the purchase of some new equipment which will cost $120,000, last for 5 years, and generate after-tax cost savings of
The RST Corp. is considering the purchase of some new equipment which will cost $120,000, last for 5 years, and generate after-tax cost savings of $45,000, $37,000, $25,000, $20,000, and $20,000 respectively per year. The firms cost of capital is 10%. The IRR of this project is
| 8.36%. | ||
| 8.40%. | ||
| 8.58%. | ||
| 12%. |
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Auditing Cases An Interactive Learning Approach
Authors: Steven M Glover, Douglas F Prawitt
4th Edition
0132423502, 978-0132423502
