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What initial cost of machine H will make the IRR for the two machines equal? Cost of Machine G ($1,625,000) Cost of Machine H ($1,750,000)

What initial cost of machine H will make the IRR for the two machines equal?

Cost of Machine G ($1,625,000) Cost of Machine H ($1,750,000)
Salvage value 16% of purchase value Salvage value 18% of purchase value
First year cost ($95,000) First year cost ($112,000)
Inflation (all costs) 6.00% p y Inflation (all costs) 6.50% p y
First year revenue $475,000 First year revenue $500,000
Increase in revenue 8% p y Increase in revenue 10% p y
Life of machine 5 years Life of machine 5 years
Life of project 20 years Life of project 20 years

Group of answer choices

$479,095

$770,040

$730,419

$1,961,354

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