# Question

Use the information in Problem 10 to do the following:

a. Calculate the payback period for the machine.

b. If the project’s cost of capital is 10 percent, would you recommend buying the machine?

c. Estimate the internal rate of return for the machine.

a. Calculate the payback period for the machine.

b. If the project’s cost of capital is 10 percent, would you recommend buying the machine?

c. Estimate the internal rate of return for the machine.

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