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Calculate an approximate interest yield for the project

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Reference no: EM131774130

Problem - A Corporation recently purchased a new machine for its factory operations at a cost of $840,000. The investment is expected to generate $250,000 in annual cash flows for a period of five years. The required rate of return is 12%. The new machine is expected to have zero salvage value at the end of the five-year period.

Instructions -

a. Using the internal rate of return method calculate an approximate interest yield for the project. [Use tables from Appendix G]

b. Should this project be accepted by the Company and why?

Need help Using the internal rate of return method calculate an approximate interest yield for the project.

Attachment:- Tables.rar

Reference no: EM131774130

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