Bailey inc is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $100,000 and a useful life of 15 years. at the end of its useful life, the punch has no salvage value. Labor costs would increase $2,000 per year using the gang punch but raw material costs would decrease $12,000 per year MARR is 5%/yr.
A. What is the internal rate of return?
B. What is the decision rule for judging attractiveness of investments based on internal rate of return?
(Please show calculations and not excel)