INFORMATION Leo Limited intends purchasing a new machine and has a choice between two machines viz. Machine A and Machine B. The following forecasts were made pertaining to these two machines:

	Machine A	Machine B
Initial Cost	400 000	400 000
Expected Useful Life	5 years	5 years
Scrap value	50 000	0
Annual Depreciation	70 000	80 000
Required Rate of return	12%	12%
Expected annual net profit	R	R
Year 1	40 000	50 000
Year 2	30 000	50 000
Year 3	60 000	50 000
Year 4	70 000	50 000
Year 5	20 000	50 000

5.6 Calculate the Internal Rate of Return of Machine B (expressed to two decimal places), using interpolation.