Zachary Manufacturing Company has an opportunity to purchase some technologically advanced equipment that will reduce the company's
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Question:
Zachary Manufacturing Company has an opportunity to purchase some technologically advanced equipment that will reduce the company's cash outflow for operating expenses by $ per year. The cost of the equipment is $ Zachary expects it to have a year useful life and a zero salvage value. The company has established an investment opportunity hurdle rate of percent and uses the straightline method for depreciation. PV of $ and PVA of $
points
Note: Use appropriate factors from the tables provided.
Required
a Calculate the internal rate of return of the investment opportunity.
Note: Do not round intermediate calculations.
b Indicate whether the investment opportunity should be accepted.
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