Question: An investment that costs $200,000 will reduce operating costs by $35,000 per year for 12 years. Determine the internal rate of return of the investment
An investment that costs $200,000 will reduce operating costs by $35,000 per year for 12 years. Determine the internal rate of return of the investment (ignore taxes). Should the investment be undertaken if the required rate of return is 18 percent?
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