Question: A company purchased a universal testing machine for $1.22M, with estimates that this would result in quality control cost savings of $188 000 per year

A company purchased a universal testing machine for $1.22M, with estimates that this would result in quality control cost savings of $188 000 per year for 12 years. Determine the IRR realized on this investment if the equipment has no salvage value at the end of 12 years.

A. 10%

B. 11%

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