What is the internal rate of return of investment

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Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $110,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value. Labor costs would increase $5,000 per year using the gang punch, but raw material costs would decrease $16,000 per year. MARR is 5%/year

What is the internal rate of return of this investment?

Reference no: EM13838570

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What is the internal rate of return of investment : Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $110,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value..

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