Compute the IRR of the investment

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"The A.M.I. Company is considering installing a new process machine for the firm's manufacturing facility. The machine costs $529,000 installed, will generate additional revenue of $90,000 per year, and will save $61,000 per year in labor and material costs. The machine will be financed by a $263,000 bank loan repayable in three equal annual installments with a 4% interest rate. The machine will be depreciated using seven-year MACRS. The useful life of the machine is 10 years when the machine will be sold for $20,000. The marginal tax rate is 33%. Compute the IRR of the investment. Enter your answer as a percentage between 0 and 100."

Reference no: EM132018169

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