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Press Smart's pressing machine sells for $185,556. At this price, the annual cost savings that the ...

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Press Smart's pressing machine sells for $185,556. At this price, the annual cost savings that the ...

Press Smart's pressing machine sells for $185,556. At this price, the annual cost savings that the pressing machine will generate for Rob's Dry Cleaner over its 8-year life will yield an internal rate of return of 12%. Rob's Dry Cleaner requires that all projects achieve a return of 15%.

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What price does Rob's Dry Cleaner need to negotiate with Press Smart so that the system will achieve that return?

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Managerial Accounting

Edition: 4^th

Author: Davis

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