Frost Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture

Question:

Frost Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $176,000, has an estimated useful life of seven years and a of zero, and will increase net annual cash flows by $33,740. What is its approximate internal rate of return?
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...