Purchase of a self-ordering machine


Problem:

You are a boss of a restaurant considering the purchase of a self-ordering machine.

The upfront cost is estimated to be $23,828.

The machine will increase revenues by $10,000 per year and incur a maintenance cost of $4,000 every year.

The machine has a 5-year useful life after which can be sold for $2,000.

The project has a negative NPV at 12%.

Whats is IRR?

Ignore taxes

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Finance Basics: Purchase of a self-ordering machine
Reference No:- TGS02048291

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