Internal Rate of Return Method (IRR) Net initial invest 379,100 Useful life 5 Years Annual Cash Influ 130,000 Annual Discount 896 De Present value of cash 1 disoucnted at Sketch of relevant Cash Flows at End of Each Year 1 2 0 Net initial investment 1 0.909 0.826 0.751 0.683 0.621 NPV if new mchine purchased (the zero difference proves that the internk rate of return is around 10%)