Evaluate the internal rate of return

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Reference no: EM13179998

Laura Corporation is considering the purchase of new equipment with a cost of $41,000. The expected cash inflow from the use of this equipment is $10,000 per year of the next five years. The required rate of return is 10 percent.

1. Calculate the payback period.

2. Calculate the Net Present Value.

3. Calculate the Internal Rate of Return.

4. Would you advise Laura Corporation to purchase the equipment?

Reference no: EM13179998

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