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A machine cost $2,550 on January 1, 2000, and $3,930 on January 1, 2004. The average ination rate over these four years was 7% per

A machine cost $2,550 on January 1, 2000, and $3,930 on January 1, 2004. The average ination rate over these four years was 7% per year. What is the true percentage increase in the cost of the machine from 2000 to 2004? B. Given the BTCF for this problem, what is the after tax IRR if the equipment has a five year property class for MACRS depreciation?

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