IRR

Latin Culsine is considering the purchase of new food processing technology, which would cost $$1,800,000$ and would generate $$315,000$ in annual cost savings. No salvage is expected on the technology at the end of its $10-$year life. The firm's cost of capital and discount nate are both $10$ percent.

a$.$ Calculate the internal rate of return for the project.

Note: Round percentage to one decimal point $($i$.$e$.$ round $4\mathrm{.}555\%$ to $4\mathrm{.}6\%).$

$6$

b$.$ Does the IRR indicate the project is acceptable?

Please answer all parts of the question.