Problem:
You have purchased a canning machine for $6,500.00. You expect the machine to save your company $1,425.00 each year for the next 10 years.
Required:
Question: What is the IRR of the machine?
- 18.48%
- 16.30%
- 16.40%
- 17.58%
- 18.58%
Note: Provide support for rationale.