how do you calculate the internal rate of return on the machine?

Delicate Pieces Inc. is considering the purchase of a special blowmolding machine that would cost$59,752 and would have a useful life of 8 years. The machine would generate$11,200 of net annual cash inflows per year for each of the 8 years of its life. The internal rate of return on the machine would be closestto:

Present Value of$1

Periods

6%

8%

10%

12%

14%

3

0.840

0.794

0.751

0.712

0.675

4

0.792

0.735

0.683

0.636

0.592

5

0.747

0.681

0.621

0.567

0.519

6

0.705

0.630

0.564

0.507

0.456

7

0.665

0.583

0.513

0.452

0.400

8

0.627

0.540

0.467

0.404

0.351

9

0.592

0.500

0.424

0.361

0.308

10

0.558

0.463

0.386

0.322

0.270

Present Value of Annuity of$1

Periods

6%

8%

10%

12%

14%

3

2.673

2.577

2.487

2.402

2.322

4

3.465

3.312

3.170

3.037

2.914

5

4.212

3.993

3.791

3.605

3.433

6

4.917

4.623

4.355

4.111

3.889

7

5.582

5.206

4.868

4.564

4.288

8

6.210

5.747

5.335

4.968

4.639

9

6.802

6.247

5.759

5.328

4.946

10

7.360

6.710

6.145

5.650

5.216

A.

14%

Your answer is not correct.

B.

6%

C.

8%

D.

10%