Corin corporation is considering the purchase of a machine

Reference no: EM13595969

Corin Corporation is considering the purchase of a machine that would cost $420,000 and would last for 8 years. At the end of 8 years, the machine would have a salvage value of $97,000. The machine would reduce labor and other costs by $76,000 per year. The company requires a minimum pretax return of 16% on all investment projects. (Ignore income taxes.)

Required:
Compute the internal rate of return of the project by inputting the variables that are entered into your calculator / Excel. (If a variable is not used in the calculation, input a zero (0). Omit the "$" and "%" signs in your response.) Round your answer to one decimal place and use a minus sign for negative numbers.

1.Interest Rate
(Rate, I, I/YR)%
2.Nper, N
3.PMT$
4.PV$
5.FV$
6.Internal Rate of Return (IRR)%

Reference no: EM13595969

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