(Ignore income taxes in this problem.) The management of Komatz Corporation is considering the purchase of a automated molding machine that would cost $308,424, would have a useful life of 8 years, and would have no salvage value. The automated molding machine would result in cash savings of $71,000 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!

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The Answer of (Ignore income taxes in this problem.) The management of Komatz Corporation is considering the purchase of a automated molding machine that would cost $308,424, would have a useful life of 8 years, and would have no salvage value. The automated molding machine would result in cash savings of $71,000 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