In order to meet some new environmental standards

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In order to meet some new environmental standards, engineers and technicians at a chemical firm have designed a new waste control system for one of the process. The cost of the installed design is expected to be $350,000. It will have little or no residual value at the end of 12 years. The savings over the current disposal costs are expected to be $65,000 per year. The firm typically desires a return of 12% in projects such as these. a. Determine the IRR for the project. b. Compare the answer in part a to the target value of 12%. c. What nonfinancial benefits are associated with this type of project? Please include a cash flow diagram in your answer as well.

Reference no: EM131288558

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