Essay
ROVNO Ltd. just invested $50 000 into a new local network. Services provided by the network will bring $15 000 per year in the next five years. The following information is given:
- real MARR = 10%
- expected annual inflation = 2%
- the network will be sold for salvage after five years; its depreciation rate is 20%
Is this a good investment in terms of the internal rate of return?
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