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Question 8.P.4: Determine the rate of return (ROR) for the machine of Proble......

Determine the rate of return (ROR) for the machine of Problem 8.3.

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By definition, the ROR is the interest rate at which NPV = 0; thus, by Problem 8.3(b), ROR = 10%. (For the given cash flows, we know that the ROR is unique.)

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