Calculate the irr on investments

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Ageist corporation distributes agricultural equipment. An electronically controlled crop sprayer project would require an investment of $10 million in assets and would produce an annual net benefit of $1.8 million over a service life of eight years. When the project terminates, the net proceeds from the sale of the assets would be $1 million.

a) Calculate the IRR on this investments by using the interpolation method.

b) If Ageist's MARR is known to be 8%, is the investment justifiable?

Reference no: EM132535347

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