Kayne company is evaluating the purchase of a rebuilt spot welding machine to be used in the manufacture of a new product. the machine has an estimated useful life of 7 years. additional information concerning the possible investment follows.

Expected machine cost. $176,000-

Estimated machine value at end of 7 years - -

1. Need cash flows acquired for 7 years and the internal rate of return

Expected annual operating cash flows- 35,000

Estimated useful life in years- 7