Interpolation of internal rate of return Milyna Company is planning to install digital con- trol units on its horizontal milling machines. The cost of the project is estimated at $40,500 and should provide an annual cash saving of $9,200 for the next 8 years, at the end of which the units will have no salvage value. The company wants to know the internal rate of return on the project before proceeding with it.

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REQUIRED Compute the internal rate of return rounded to one decimal place.