Question: D&B Contracting plans to purchase a new backhoe. The one under consideration costs $130,000 and has a useful life of 7 years. After-tax cash flows

D&B Contracting plans to purchase a new backhoe. The one under consideration costs $130,000 and has a useful life of 7 years. After-tax cash flows are expected to be $35,324 in each of the 7 years and nothing thereafter. Calculate the internal rate of return for the grader.

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