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Compute the project internal rate of return

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Question - Rascal Clothing is evaluating a new weaving machine that costs $90,000. It is expected that the machine will generate after-tax cash flows equal to $54,000 per year for two years. Rascal's required rate of return is 10 percent. Compute the project's

(a) internal rate of return (IRR) and

(b) modified internal rate of return (MIRR).

(c) Should the project be purchased?

Reference no: EM133175189

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