Imagine that you run a pencil company and that you are considering purchasing a new machine. Machine costs $5000 and can produce 2000 pencils per year. You sell the pencils for $1, generating $2000 in revenue per year. Assume the machine is only input, have certainty about the revenue, no maintenance and a 3 year lifespan. If you borrow $5000, is the revenue enough to make the payments? Please explain each process with an explanation. Explain mathematical. What is IRR and formula?