Exercise 13-9 Internal Rate of Return and Net Present Value [LO1, LO2]

Scotia Family Health Team is investigating purchasing an ultrasound machine for use in its patient clinic. The machine would cost $97,900, including invoice cost, freight, and the training of employees to operate it. Scotia has estimated that the new machine would increase the company's cash flows, net of expenses, by $17,000 per year. The machine would have a nine-year useful life with no expected salvage value. (Ignore income taxes.)

(Hint: Use Microsoft Excel to calculate the discount factor(s).)

Required . 1 . Compute the machine's IRR. I Do not round intermediate calculations and round your final answer to nearest whole number . ! Internal rate of return