Find irr if the new product is launched

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Reference no: EM132088160

Question: X Company is considering launching a new product. The company believes unit sales of this product will be 8,500 in each of the next 4 years, and that the contribution margin will be $6.20 per unit. Additional fixed costs will be $19,642. Equipment costing $120,000 will have to be purchased; the equipment will have no salvage value at the end of 4 years.

What is the internal rate of return if the new product is launched?

Reference no: EM132088160

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