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Question: An company can choose to pay for a new computer system in one payment now, or make quarterly payments over the next 1 year. The computer system costs $70,125. Quarterly payments are $20,000 end-of-period quarterly payments. Determine the incremental effective annual interest rate or incremental IRR? What is the best option? Use linear interpolation to give the accurate incremental effective annual interest rate or incremental IRR. Do not use Excel.

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Category:- Basic Finance
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