Question: Rascal Clothing is evaluating a new weaving machine that costs $90,000. It is expected that the machine will generate after-tax cash flows equal to $54,000

Rascal Clothing is evaluating a new weaving machine that costs $90,000. It is expected that the machine will generate after-tax cash flows equal to $54,000 per year for two years. Rascal's required rate of return is 9 percent. Compute the projects (a) internal rate of return (IRR) and (b) modified internal rate of return (MIRR). (c) Should the project be purchased?

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