(Present value tables are required.)Salvador Corporation is considering the purchase of a special blow-molding machine that would cost $64,366 and would have a useful life of 8 years.The machine would generate $11,200 of net annual cash inflows per year for each of the 8 years of its life.The internal rate of return on the machine would be closest to:

Question

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The IRR is the discount rate that makes the NPV of the project equal to zero. Using a present value table, we can find that the IRR for this project is closest to 8%.

(Present Value Tables Are Required