For the packaging machine, the IRR calculation would look like this: $0=-$$$14,000+($$$4,100/(1+$IRR$)^1)+($$$3,300/(1+$IRR$)^2)+($$$2,900/(1+$IRR$)^3)+($$$2,200/(1+$IRR$)^4)+($$$1,200/(1+$IRR$)^5)$ Solving for IRR would give us the IRR for the packaging machine.

The IRR is the rate that makes the NPV of the project equal to zero. It can be found using financial calculators or spreadsheet software by setting the NPV formula equal to zero and solving for r$.$