What is the internal rate of return on the investment

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A machine that cost $18000 is expected to operate for 10 years. The estimated salvage value at the end of 10 years is $0. The machine is expected to save the company $1,200 per year before taxes and depreciation. The company depreciates its assets on a straight-line basis and has a marginal tax rate of 40 percent.

Problem A: What is the internal rate of return on this investment?

Reference no: EM132770216

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