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Determine the exact after-tax irr for investment

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The cost of a new machine is $110,000 and it is expected to reduce the labour cost by $30,000 per year. The salvage value of the machine at the end of year six is expected to be $20,000. If the after-tax MARR of the company is 9% and the tax rate is 55%:

a) Determine the exact after-tax IRR for this investment?

b) Determine the approximate after-tax IRR?

c) Should the company buy this machine?

Reference no: EM132608483

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