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Internal Rate of Return

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Your company is evaluating a replacement project that could increase the cash flow by $10,000 per year for the next 5 years. The installed cost of the new equipment will be $29,910. Assume a 10% required rate of return (cost of capital, also called discount rate).

What is the payback period for the project?
What is the Net Present Value for the project?
Determine the Internal Rate of Return for the project.
Is the project acceptable? Explain why? Or why not?

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Your company is evaluating a replacement project that could increase the cash flow by $10,000 per year for the next 5 years. The installed cost of the new equipment will be $29,910. Assume a 10% required rate of return (cost of capital, also called discount rate).

What is the payback ...

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