Consider each case below independently. (Ignore income taxes.)

Click here to view Exhibit 13B-1 http://lectures.mhhe.com/connect/0078111005/Exhibit/Exhibit%2013B-1.jpg

Exhibit 13B-2 - http://lectures.mhhe.com/connect/0078111005/Exhibit/Exhibit%2013B-2.jpg

to determine the appropriate discount factor(s) using tables.

2.

Leven Products, Inc., is investigating the purchase of a new grinding machine that has a projected life of 19 years. It is estimated that the machine will save $50,000 per year in cash operating costs. What is the machines internal rate of return if it costs $368,300 new? (Round discount factor(s) to 3 decimal places and final answer to the closest interest rate. Omit the "%" sign in your response.) Internal rate of return % << ???