Bears, Inc. is considering investing in testing equipment to improve the quality control of its products. The new equipment will cost $983,000, with an estimated useful life of four years and no salvage value. Management has set a minimum return of 15% for similar investment opportunities. The new equipment is expected to generate $365,900 in after-tax operating expense savings, but will require a working capital commitment of $40,000 for the entire four years of the investment life (four years). What is the equipment's expected internal rate of return? PLEASE SHOW YOUR SOLUTION MANUALLY ( DON'T USE EXCEL OR USING FINANCIAL CALCULATOR) BECAUSE I REALLY DON'T KNOW THE FORMULA FOR INTERNAL RATE OF RETURN HUHUHU PLS HELP
Bears, Inc. is considering investing in testing equipment to improve the quality control of its products. The new equipment will cost $983,000, with an estimated useful life of four years and no salvage value. Management has set a minimum return of 15% for similar investment opportunities. The new equipment is expected to generate $365,900 in after-tax operating expense savings, but will require a
PLEASE SHOW YOUR SOLUTION MANUALLY ( DON'T USE EXCEL OR USING FINANCIAL CALCULATOR) BECAUSE I REALLY DON'T KNOW THE FORMULA FOR INTERNAL RATE OF RETURN HUHUHU PLS HELP
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