What initial cost of machine H will make the IRR for the two machines equal? Cost...

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What initial cost of machine H will make the IRR for the two machines equal? Cost of Machine G Salvage value 16% First year cost ($95,000) Inflation (all costs) First year revenue ($1,625,000) Increase in revenue 6.00% $475,000 8% Life of machine Life of project 20 01 of purchase value py py years years Cost of Machine H Salvage value First year revenue ($1,750,000) First year cost ($112,000) Inflation (all costs) Increase in revenue 18% 6.50% $500,000 10% Life of machine Life of project 20 5 of purchase value py py years years What initial cost of machine H will make the IRR for the two machines equal? Cost of Machine G Salvage value 16% First year cost ($95,000) Inflation (all costs) First year revenue ($1,625,000) Increase in revenue 6.00% $475,000 8% Life of machine Life of project 20 01 of purchase value py py years years Cost of Machine H Salvage value First year revenue ($1,750,000) First year cost ($112,000) Inflation (all costs) Increase in revenue 18% 6.50% $500,000 10% Life of machine Life of project 20 5 of purchase value py py years years

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SOLUTION To calculate the initial cost of machine H that will make the internal rate of return IRR f... View the full answer