Latin Cuisine is considering the purchase of new food processing technology, which would cost $1,800,000 and would generate $300,000 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 rate are both 10 percent.

UseTable 1andTable 2present value tables to solve following problems.

??a.Calculate the internal rate of return for the project. Round your answer to the nearest one-half of one percent (for example, a computed answer of .0838 would be entered in the answer box as "8.5").