647 4946 5216 chapter16module7irr decker company can

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Unformatted text preview: 2% 0.893 1.690 ... 5.328 5.650 14% 0.877 1.647 ... 4.946 5.216 Chapter 16 Module 7: IRR • Decker Company can purchase a new machine at a cost of $104,320 that will save $20,000 per year in cash operating costs. • The machine has a 10-year life. The internal rate of return on this project is 14%. Since the internal rate of return is less than Since the company’s minimum required rate of return (cost of capital), the new machine should not be purchased. should Chapter 16 Module 7: IRR The expected annual net ca...
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This note was uploaded on 03/24/2014 for the course AMIS 310 taught by Professor Smith during the Spring '08 term at Ohio State.

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