What is the internal rate of return, Financial Management

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What is the internal rate of return

Problem

Wilson Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of P50,000. The equipment will have an initial cost of P600,000 and have an 8-year life. The salvage value of the equipment is estimated to be P100,000. If the hurdle rate is 10%, what is the internal rate of return?

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