Exercise 5 General Hospital is planning to add a new diagnostic machine which should improve its quality of certain blood tests. The machine under consideration has a cost of $80,416and is expected to save the hospital $7,420each year. The machine has an expected useful life of16years.

(a)Calculate the internal rate of return on the diagnostic machine.(Round answer to 0 decimal places, e.g. 16%.)

Internal rate of return

%

Exercise 5 General Hospital is planning to add a new diagnostic machine which should improve its quality of certain blood tests. The machine under consideration has a cost of $80,416 and is expected to save the hospital $7,420 each year. The machine has an expected useful life of 16 years. (a) Calculate the internal rate of return on the diagnostic machine. (Round answer to 0 decimal places, e.g. 16%.) Internal rate of return %