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A $45,000 investment on a new CNC machine is projected to improve throughput and increasing revenue by $14,000 per year for five years. The production line will have an estimated market value of $4,000 at the end of five years and a %.

a) Using FW, is this a good investment?

b) Calculate the IRR for this investment. How would you explain result of your analysis? (Show your analysis in graphs of present worth versus interest rate)

Macroeconomics, Economics

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