Installing an automated production system costing $300,000 is initially expected to save Zia Corporation $52,000 in expenses annually. If the system needs $7500 in operating and maintenance costs each year and has a salvage value of $30,000 at Year 10 , what is the IRR of this system? If the company wants to earn at least 12% on all investments, should this system be purchased? Contributed by Paul R. McCright, University of South Florida Installing an automated production system costing $300,000 is initially expected to save Zia Corporation $52,000 in expenses annually. If the system needs $7500 in operating and maintenance costs each year and has a salvage value of $30,000 at Year 10 , what is the IRR of this system? If the company wants to earn at least 12% on all investments, should this system be purchased? Contributed by Paul R. McCright, University of South Florida