Suppose you pay $100, 000 now for a piece of equipment which earns you $50,...
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Finance
Suppose you pay $100, 000 now for a piece of equipment which earns you $50, 000 a year for the next 4 years. At the end of year 4, you can resell the piece of equipment for $30, 000. (a) What is the internal rate of return on this investment? (b) Suppose that you also have to pay $10, 000 in year 2 for a repair. What is the internal rate of return now?
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