What is the internal rate of return

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Question - King's Department Store is contemplating the purchase of a new machine at a cost of $22,802. The machine will provide $3,500 per year in cash flow for nine years. King's has a cost of capital of 10 percent. Use Appendix D for an approximate answer but calculate your final answer using the financial calculator method.

Required -

a. What is the internal rate of return?

b. Should the project be undertaken?

Reference no: EM133122812

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