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Compute the internal rate of return for proposed investment

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Reference no: EM132758514

OptiLux is considering investing in an automated manufacturing system. The system requires an initial investment of $5.0 million, has a 20-year life, and will have zero salvage value. If the system is implemented, the company will save $680,000 per year in direct labor costs. The company requires a 10% return from its investments.

Problem 1: Compute the internal rate of return for the proposed investment.

Reference no: EM132758514

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