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A construction company wishes to replace its mixing fleet and worked on the calculations for determining the appropriate replacement cycle of its fleet. As per the calculations, the company has remained indifferent regarding replacing its fleet in every 2 years or 4 years. The present value of the replacement cycle for the first 2 years is Rs. 2604,000 and for 4 years Rs. 4755000. The company is using .......... as its discount rate.

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