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Toyota Motor Corporation is considering investing in new technology to enhance the efficiency of its manufacturing processes. The company is evaluating two options: Option A

  1. Toyota Motor Corporation is considering investing in new technology to enhance the efficiency of its manufacturing processes. The company is evaluating two options: Option A involves purchasing advanced robotics equipment for $20 million, while Option B involves leasing the equipment for an annual fee of $5 million for five years. Calculate the internal rate of return (IRR) for each option and discuss the financial implications of the IRR results for Toyota's investment decision-making process.

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