the subject is construction financial practice Q2. LA Builder is analyzing the...
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the subject is construction financial practice
Q2. LA Builder is analyzing the purchase of machine that will cost $40,000. The annual cash inflows for the next four years as shown in Table 1.0. Table 1.0 Year 1 2 3 4 Cash Flow (S) 10,000 13,000 15,000 12,000 (a) (b) Determine the internal rate of return using interpolation. Use 3 decimal places for all answers. (13 marks) With a cost of capital of 15 percent, should the machine be purchased? (2 marks) [Total: 15 marks)
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