Compute the internal rate of return for the machine

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Question - Emerson, Lake & Palmer is considering purchasing a new machine for $33,000. The machine would generate a net cash flow of $10,200 per year for five years. At the end of five years, the machine would have no residual value. The company's cost of capital is 12 percent and it uses straight line depreciation. Compute the internal rate of return for the machine, rounded to the nearest percent.

Reference no: EM132599240

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