(Ignore income taxes in this problem.)The management of Zachery Corporation is considering the purchase of a automated molding machine that would cost $203,255,would have a useful life of 5 years,and would have no salvage value.The automated molding machine would result in cash savings of $65,000 per year due to lower labor and other costs.
Required:
Determine the internal rate of return on the investment in the new automated molding machine.Show your work!

Question

Quizplus · Accepted Answer

The Answer of (Ignore income taxes in this problem.)The management of Zachery Corporation is considering the purchase of a automated molding machine that would cost $203,255,would have a useful life of 5 years,and would have no salvage value.The automated molding machine would result in cash savings of $65,000 per year due to lower labor and other costs.
Required:
Determine the internal rate of return on the investment in the new automated molding machine.Show your work!

(Ignore Income Taxes in This Problem