Determining the straight-line depreciation

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Reference no: EM131810165

A heat exchanger purchased by Hot Spot Manufacturing cost $24,000. The exchanger will produce savings of $6500 in each of the 10 years it is in service. Using a tax rate of 34% and straight-line depreciation over the 10-year life, determine the IRR. The exchanger will have a salvage value of $500 at the end of its life.

Reference no: EM131810165

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