Considering the purchase of new machine

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Reference no: EM132037906

Erdley’s Business Products is considering the purchase of a new machine at a cost of $11,070. The cash flow from the machine will be $2,000 per year for eight years. Erdley’s cost of capital is 13 percent. Using the internal rate of return method, analyze this project and provide a recommendation as to whether it should be undertaken.

Reference no: EM132037906

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