Problem
A heat exchanger purchased by Hot Spot Manufacturing cost $24,000. The exchanger will produce savings of $6500 in each of the 10 years it is in service. Using a tax rate of 34% and straight-line depreciation over the 10-year life, determine the IRR. The exchanger will have a salvage value of $500 at the end of its life.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.