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Internal Rate of Return Lisun Company produces a variety of gardening tools and aids. The company is examining the possibility of investing in a new production system that will reduce the costs of the current system. The new system will require a cash investment of $4,607,200 and will produce net cash savings of $800,000 per year. The system has a projected life of 9 years. Required: Calculate the IRR for the new production system. For discount factors use Exhibit 12B-2. Round your answer to the nearest whole percentage. fill in the blank 1 %

Internal Rate of Return Lisun Company produces a variety of gardening tools and aids. The company is examining the possibility of investing in a new production system that will reduce the costs of the current system. The new system will require a cash investment of $4,607,200 and will produce net cash savings of $800,000 per year. The system has a projected life of 9 years. Required: Calculate the IRR for the new production system. For discount factors use Exhibit 12B-2. Round your answer to the nearest whole percentage. fill in the blank 1 %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Internal Rate of Return

Lisun Company produces a variety of gardening tools and aids. The company is examining the possibility of investing in a new production system that will reduce the costs of the current system. The new system will require a cash investment of $4,607,200 and will produce net cash savings of $800,000 per year. The system has a projected life of 9 years.

Required:

Calculate the IRR for the new production system. For discount factors use Exhibit 12B-2. Round your answer to the nearest whole percentage.
fill in the blank 1 %

 
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