What is the approximate internal rate of return as a decimal

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Question - Z Store must decide whether to continue using its current equipment or replace it with new, more efficient equipment. The following information is available for the current and new equipment:

Current Equipment

Current Sales Value = $10,000

Final Sales Vale = 3,780

Operating Costs = 69,250

New Equipment

Purchase Cost = $160,000

Final Sales Value = 3,780

Operating costs = 27,690

The current and new equipment will last for 6 years. If Z Store replaces the current equipment, what is the approximate internal rate of return as a decimal?

Reference no: EM132783974

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