A company purchase a piece of manufacturing equipment for


Question: A company purchase a piece of manufacturing equipment for an additional income. The expected income is $3, 500 per semester. Its useful life is 9 years. Expenses are estimated to be $500 semiannually. If the purchase price is $34,000 and there is a salvage value of $4, 500, what is the prospective rate of return (IRR) of this investment? The MARR is 10% compounded semiannually.

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Finance Basics: A company purchase a piece of manufacturing equipment for
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