Business, 05.11.2019 05:31, AnonymousLizard52303

Realturf is considering purchasing an automatic sprinkler system for its sod farm by borrowing the entire $65,000 purchase price. the loan would be repaid with four equal annual payments at an interest rate of 12%/year. it is anticipated that the sprinkler system would be used for 9 years and then sold for a salvage value of $9,000. annual operating and maintenance expenses for the system over the 9-year life are estimated to be $13,000 per year. if the new system is purchased, cost savings of $25,000 per year will be realized over the present manual watering system. realturf uses a marr of 15%/year for economic decision making. show the internal rate of return used to reach your decision:

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Realturf is considering purchasing an automatic sprinkler system for its sod farm by borrowing the e...