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Calculate the equipment internal rate of the return

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Reference no: EM132010091

Question - The Pearce club Inc, is considering investing in an excerise machine that costs $5000.00 and would increase revenues by $1500.00 a year for five years. The machine would be depreciated over its five year useful life via the straight line method and would have no salvage value. Calculate the equipment's internal rate of the return. Assume that the tax rate is 30 percent.

Reference no: EM132010091

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