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Investment required in equipment: $31,000 Annual cash inflows: $6,400 Salvage value of equipment: 0 Life of...

Investment required in equipment: $31,000
Annual cash inflows: $6,400
Salvage value of equipment: 0
Life of the investment: 15 years
Required rate of return: 10%
The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The internal rate of return of the investment is closest to:

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