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Bridgeport Company is considering purchasing one of two new machines. The following estimates are available for each machine: Machine 1 Machine 2 Initial cost
Bridgeport Company is considering purchasing one of two new machines. The following estimates are available for each machine: Machine 1 Machine 2 Initial cost $162,900 $172,700 Annual cash flows 57,500 66,000 Annual cash outflows 19,000 24,000 Estimated useful life 6 years 6 years The company's minimum required rate of return is 9%. Present Value of an Annuity of 1 Period 8% 9% 10% 11% 12% 15% 6 4.62288 4.48592 4.35526 4.23054 4.11141 3.78448 Compute the internal rate of return for each machine. (Round answer to 0 decimal places, e.g. 5,275.) Internal rate of return Machine 1 Machine 2 % %
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