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What is the IRR on investment

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Question - Community Health Center (CHC) is considering spending $50,000 today for a blood analyzer. The annual cash profits from the machine will be $7,000 for each of the 7 years of its useful life. The board of directors wants to pursue this investment, because they think the $49,000 CHC will receive is close to the $50,000 cost. What is the IRR on the investment? What is wrong with the board logic?

Reference no: EM132620054

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