The actual cost of a material is $2.33 per produced unit. A Six sigma team develop a productivity project that reduce the cost to $2.20 per produced unit. The total production is 15920 units in a year. The project required a new equipment with a cost of $3120. Without depreciation and learning curve, determine the IRR of the investment. Use two decimal points.

The actual cost of a material is $2.33 per produced unit. A Six sigma team develop a productivity project that reduce the cost to $2.20 per produced unit. The total production is 15920 units in a year. The project required a new equipment with a cost of $3120. Without depreciation and learning curve, determine the IRR of the investment. Use two decimal points.

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Description: Subject: The actual cost of a material is $2.33 per produced unit. A Six sigma team develop a productivity project that reduce the costto $2.20 per produced unit. The total production is 15920 units in a year. The project required a new equipment wit

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 17EB: Caduceus Company is considering the purchase of a new piece of factory equipment that will cost...

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