Problem:
Hayner Limos, Inc., is considering the purchase of a limousine that would cost $149,868, would have a useful life of 9 years, and would have no salvage value. The limousine would bring in cash inflows of $36,000 per year in excess of its cash operating costs.
Required:
Question: Determine the internal rate of return on the investment in the new limousine.
Note: Explain all steps comprehensively.