Solution-Internal rate of return on a new piece of equipment

Internal rate of return on a new piece of equipment

Reference no: EM132444195

You are asked to compute an internal rate of return (IRR) on a new piece of equipment. You do so and the IRR indicates that the investment will never pay for itself. However you feel strongly that the investment should be made anyways. Under what circumstances would you advocate for the new equipment even though the IRR is negative?

Reference no: EM132444195

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Internal rate of return on a new piece of equipment

Reference no: EM132444195

Reference no: EM132444195

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