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Business, 29.03.2021 17:20 Katelyn1236

A town in Wyoming wants to drill a geothermal well to provide district heating steam and hot water for its businesses and residences. After government​ subsidies, the capital investment for the well is ​$388,000​, and the geothermal well will reduce natural gas consumption for steam and hot water production by ​$45,000 per year. The salvage value of the well is negligible. The simple payback period for this well is 9 years. If the MARR of the town is 4​% per year and the life of the geothermal well is 26 ​years, what is the IRR for this​ project?

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