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Author Question: ABC Company is considering the purchase of a new piece of equipment costing $138,875. The equipment ... (Read 267 times)

jany123

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ABC Company is considering the purchase of a new piece of equipment costing $138,875. The equipment has a 7-year useful life and is expected to generate $24,000 in annual cost savings. ABC has a 4% required rate of return.

Required:

a.What is the internal rate of return for the equipment, rounded to nearest factor?
b.Should ABC purchase the new equipment? Why or Why not


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Marked as best answer by jany123 on Feb 5, 2023

brunoanthony

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jany123

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Reply 2 on: Feb 5, 2023
YES! Correct, THANKS for helping me on my review


sailorcrescent

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Reply 3 on: Yesterday
:D TYSM

 

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