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Brown Corporation - IRR

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Brown Corporation recently purchase a new machine for $253,616 with a ten-year life. The old equipment has a remaining life of 10 years and no disposal value at the time of replacement. Net cash flows will be $60,500 per year. What is the internal rate of return (IRR)?

a 12.00%
b 16.00%
c 20.00%
d 24.00%

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Solution Summary

The solution computes the internal rate fo return for Brown Corporation.

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