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Calculate the IRR for the new production system

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Reference no: EM132874613

Problem - Richins Company produces automobile engine parts. The company is examining the possibility of investing in a new production system that will reduce the costs of the current system. The new system will require a cash investment of $11,551,968 and will produce net cash savings of $1,800,000 per year. The system has a projected life of 10 years.

Required - Calculate the IRR for the new production system.

Reference no: EM132874613

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