Question
Wagner Tools is analyzing the purchase of a new machine costing $155,000. The company expects to realize net savings of $30,000 per year for the
Wagner Tools is analyzing the purchase of a new machine costing $155,000. The company expects to realize net savings of $30,000 per year for the next 7 years. What is Wagner's internal rate of return (IRR) on this investment?
Select one:
A. 6.72%
B. 7.32%
C. 8.22%
D. 9.52%
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
2nd Edition
0324117752, 9780324117752
