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A New Computer System Is Expected to Cost $40 Million

Question 14

Multiple Choice

A new computer system is expected to cost $40 million and generate annual savings of $12 million over the next five years.

What is the IRR for this investment?


A) 11.18 percent.
B) 12.98 percent.
C) 15.24 percent.
D) 12.00 percent.

Correct Answer:

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