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small industrial machine costs $86,000 and is expected to earn annual net cash inflows of $37,800,...

small industrial machine costs $86,000 and is expected to earn annual net cash inflows of $37,800, $34,400, $31,000 and $27,500, before it wears out sufficiently to be unreliable and must be sold for an estimated $8,600.funds earn 13 per cent, what is What is the IRR for the machine?
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Answer #1

IRR = 22.84%

Year Cash flows
0 -86000
1 37800
2 34400
3 31000
4 36100
IRR 22.94%

WORKINGS: Using excel IRR function

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