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Home Q & A Board Other Fields Homework Help Business Accounting
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itpf04 itpf04
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A year ago
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
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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naj2008hnaj2008h
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A year ago
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itpf04 Author
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A year ago
Brilliant ツ
DragonHeart
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Yesterday
Smart ... Thanks!
zsc999
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2 hours ago
Helped a lot
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