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Heckrwee Industries Is Considering a Project That Would Require an Initial

Question 99

Multiple Choice

Heckrwee Industries is considering a project that would require an initial investment of $101,000. The project would result in cost savings of $62,000 in year 1 and $70,000 in year 2. The internal rate of return is


A) under 15%.
B) between 16% and 17%.
C) between 18% and 20%.
D) none of the above.

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