Distributes agricultural equipment-linear interpolation

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Reference no: EM131460648

Alpha Corporation distributes agricultural equipment. The board of directors is considering a proposal to establish a facility to manufacture an electronically controlled "intelligent" crop sprayer invented by a professor at a local university. This crop-sprayer project would require an investment of SI8 million in assets and would produce an annual after-tax net benefit of SS million over a service life of eight years. When the project terminates, the net proceeds from the sale of the assets would be $3 million. Assume MARR of 20%. Compute the Internal Rate of Return (IRR) and evaluate the project using two methods:

Linear Interpolation (trial-and-error)

Reference no: EM131460648

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