Question: Gamma Electronics Gamma Electronics is considering the purchase of testing equipment that will cost $800,000 to replace old equipment. Assume the new machine will generate

Gamma Electronics Gamma Electronics is considering the purchase of testing equipment that will cost $800,000 to replace old equipment. Assume the new machine will generate after-tax savings of $400,000 per year over the next four years, If Gamma Electronics has a 18% cost of capital, what's the IRR of the investment? 34.9% 18.0% 100.0% 21.9%

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