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Internal Rate of Return (IRR) - Warner Business Products

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Warner Business Products is considering the purchase of a new machine at a cost of $11,070. The machine will provide $2,000 per year in cash flow for eight years. Warner's cost of capital is 13 percent. Using the internal rate of return method, evaluate this project and indicate whether it should be undertaken.

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This provides the steps to calculate the Internal Rate of Return (IRR) - Warner Business Products new machine

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Internal Rate of Return - Warner Business Products

Warner Business Products is considering the purchase of a new machine at a cost of $11,070. The machine will provide $2,000 per year in cash flow for eight years. Warner's ...

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