Is this the correct IRR rate?

2. Your firm plans on purchasing equipment that will enable a new product line. The equipment will be usable for 10 years. Next year's revenues are expected to equal $13,000,000 per year over the operating period. Cash Expenses will equal 50% of revenues. The equipment will cost $2,000,000 (payable today) and will be depreciated according to 7-year MACRS (see next page for MACRS schedule). With a tax rate of 21% and a discount rate of 10%, what is the IRR of the equipment? MACRS Property Class Year 1 2 3 4 5 6 7 3-Year 33.33% 44.44% 14.82% 7.41% 5-Year 20.00% 32.00% 19.20% 11.52% 11.52% 5.76% 7-Year 14.29% 24.49% 17.49% 12.49% 8.93% 8.93% 8.93% 4.45% Number IRRIB14:14) C D G Year 1 Year 2 Year Year 4 Year 5 Year 6 Year 7 Year Year 9 Year to Revenues $ 13,000,000 $13,000,000 $13,000,000 $13,000,000 $13,000,000 $13,000,000 $13,000,000 $13,000,000 $13,000,000 $12.000.000 Less: Cash Operations $ 6,500,000 $ 6,500,000 $ 6,500,000 $ 6,500,000 $ 6,500,000 $6,500,000 $ 6.500,000 $ 6.500,000 $ 6,500,000 $ 6.500.000 Less: Depreciation $285,800S 189,800 $ 349,800 $ 249,00 $ 178,600 178,6005 178,6005 89,000 $ EBIT S6,214,200 5 0,010,200 S 6,150,200 $ 6,250,200 $ 6,321,400 $ 6,321,400 $6.321.400 5411,000 $ 6.500.000 $ 6.50 0.21 Loss Takes S 1.104,982 $ 1.262,142 $ 1,291.542 S 1,312,542 5 1,327,494 $ 1,127,494 $ 1,122.4941146310 1.165.000 $ 1.165.000 Net Income 54.903.215 54,748,058 S 4,858,658 S 4937,658 $ 4,993.906 S 4,993 906 $ 4,993,906 5.064,680 5 5135,000.00 Add: Depreciation 285.00 $ 489.00 $ 349,000 $ 249,00) 178,600 174100 $ 12.000 9,000 AT OCH $ 5,195,018 5.237,858 S 5.200,458 S 5.18.45 S 5.172.506 5 5.122.506 S 172.506 SOS DOS 560 2.000.000 MACAS 0.1429 0.2449 0.1749 0.1249 00893 0.0099 0.0893 0.0445 10 Investment Outlay CI C2 C4 CS CO CW CIO 14 2000000.00 $ 5,195.018 S 5,237,858 $ $.208.458 S 5,187,456 5,172,505 5 5,172,506 5 5.172.506 S 5,151690 3 5.195.000 3.115.000 15 Discount Rate 0.1 200W