Excaliber is considering the acquisition of a

$$217,750$ machine that is expected to produce

annual savings in cash operating costs of $$50,000$

over the next six years. If Excaliber uses the internal

rate of return $($IRR$)$ to evaluate new investments and

the company has a hurdle rate of $12\%,$ which of the

following statements is correct, using the tables

that follow?

The machine's IRR is less than $4\%,$ and the machine

should not be acquired

The machine's IRR is approximately $10\%,$ and the

machine should not be acquired

The machine's IRR is approximately $10\%,$ and the

machine should be acquired

The machine's IRR is approximately $12\%,$ and the

machine should be acquired

All of the statements are false