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Category > Accounting Posted 14 May 2017 My Price 7.00

Corin Corporation is considering the purchase of a machine

Corin Corporation is considering the purchase of a machine that would cost $420,000 and would last for 8 years. At the end of 8 years, the machine would have a salvage value of $97,000. The machine would reduce labor and other costs by $76,000 per year. The company requires a minimum pretax return of 16% on all investment projects. (Ignore income taxes.)

Required:

Compute the internal rate of return of the project by inputting the variables that are entered into your calculator / Excel. (If a variable is not used in the calculation, input a zero (0). Omit the "$" and "%" signs in your response.) Round your answer to one decimal place and use a minus sign for negative numbers.

1.Interest Rate
(Rate, I, I/YR)%

2.Nper, N

3.PMT$

4.PV$

5.FV$

6.Internal Rate of Return (IRR)%

Answers

(8)
Status NEW Posted 14 May 2017 05:05 PM My Price 7.00

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Attachments

file 1494781498-Answer.docx preview (265 words )
C-----------ori-----------n C-----------orp-----------ora-----------tio-----------n i-----------s c-----------ons-----------ide-----------rin-----------g t-----------he -----------pur-----------cha-----------se -----------of -----------a m-----------ach-----------ine----------- th-----------at -----------wou-----------ld -----------cos-----------t $-----------420-----------,00-----------0 a-----------nd -----------wou-----------ld -----------las-----------t f-----------or -----------8 y-----------ear-----------s. -----------At -----------the----------- en-----------d o-----------f 8----------- ye-----------ars-----------, t-----------he -----------mac-----------hin-----------e w-----------oul-----------d h-----------ave----------- a -----------sal-----------vag-----------e v-----------alu-----------e o-----------f $-----------97,-----------000-----------. T-----------he -----------mac-----------hin-----------e w-----------oul-----------d r-----------edu-----------ce -----------lab-----------or -----------and----------- ot-----------her----------- co-----------sts----------- by----------- $7-----------6,0-----------00 -----------per----------- ye-----------ar.----------- Th-----------e c-----------omp-----------any----------- re-----------qui-----------res----------- a -----------min-----------imu-----------m p-----------ret-----------ax -----------ret-----------urn----------- of----------- 16-----------% o-----------n a-----------ll -----------inv-----------est-----------men-----------t p-----------roj-----------ect-----------s. -----------(Ig-----------nor-----------e i-----------nco-----------me -----------tax-----------es.-----------)Re-----------qui-----------red-----------:Co-----------mpu-----------te -----------the----------- in-----------ter-----------nal----------- ra-----------te -----------of -----------ret-----------urn----------- of----------- th-----------e p-----------roj-----------ect----------- by----------- in-----------put-----------tin-----------g
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