Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger

تمرين 19

Internal Rate of Return
Jardin Company produces a variety of gardening tools and aids. The company is examining the possibility of investing in a new production system that will reduce the costs of the current system. The new system will require a cash investment of $2,303,600 and will produce net cash savings of $400,000 per year. The system has a projected life of nine years.
Required:
Calculate the IRR for the new production system.