A buildings and grounds manager of a university is contemplating the purchase of some lawn-maintenance equipment that is expected to increase efficiency and produce cash operating savings of $2,000 per year. The useful life of the equipment is four years, after which it will have a net disposal value of zero. The equipment will cost $6,075 now and the minimum desired rate of return is 10% per year. Using the internal rate of return decide if the investment should be made. 000,000. Calculate.

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Internal Rate of Return IRR Analysis for LawnMaintenance Equipment Heres how to determine the Intern... View the full answer