(Present value tables are required. )Vino Winery is considering the purchase of a state-of-the-art bottling machine.The new machine will cost $28,250 and will have a useful life of 10 years.The new machine will provide net cash savings of $5,000 per year.What is the internal rate of return (IRR)for the new bottling machine?

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Quizplus · Accepted Answer

C)
Costs $28,250/5,000 net cash flow = 5.65
Closest FVA = >12.00 %

(Present Value Tables Are Required