Contemplating the purchase of new machine

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King’s Department Store is contemplating the purchase of a new machine at a cost of $36,686. The machine will provide $4,900 per year in cash flow for fourteen years. King’s has a cost of capital of 12 percent. Use Appendix D for an approximate answer but calculate your final answer using the financial calculator method. a. What is the internal rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Reference no: EM131531843

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What is internal rate of return : King’s Department Store is contemplating the purchase of a new machine at a cost of $36,686. What is the internal rate of return?

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