Exercise 9-12 x Your answer is incorrect. Try again. Garrett Boone, Bridgeport Enterprises' vice president...
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Exercise 9-12 x Your answer is incorrect. Try again. Garrett Boone, Bridgeport Enterprises' vice president of operations, needs to replace an automatic lathe on the production line. The model he is considering has a sales price of $287,133 and will last for 9 years. It will have no salvage value at the end of its useful life. Garrett estimates the new lathe will reduce raw materials scrap by $37,400 per year. He also believes the lathe will reduce energy costs by $28,100 per year. If he purchases the new lathe, he will be able to sell the old lathe for $5,286. Click here to view the factor table. (a) Calculate the lathe's internal rate of return. 1 17.446 17.446|| Internal rate of return $ (b) If Bridgeport Enterprises uses a 15% hurdle rate, should Garrett purchase the lathe
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