What irr will be earned on the purchased of the machine

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An industrial machine costing $10,000 will produce net cash savings of $4,000 per year. The machine has a five-year useful life but must be returned to the factory for major repairs after three years of operation. These repairs cost $5,000. The company's MARR is 10% per year. What IRR will be earned on the purchased of this machine? Analyze the sensitivity of IRR to ±2,000 changes in the repair cost.

Reference no: EM13201942

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