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Problem

Leven Rehabilitation Center, a training service, is investigating the purchase of a new energy-efficient cold coffee bottling machine that has a projected life of 15 years. It is estimated that the machine will save $20,000 per year in cash operating costs.

1. What is the machine's internal rate of return if it costs $111,500 new?

2. Is the machine an acceptable investment? Explain.

3. What risks should be included?

Complete the questions using Microsoft Excel and submit.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92740621

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