Merton Manufacturing Company has an opportunity to purchase some technologically advanced equipment that will reduce the companys cash outflow for operating expenses by $1,271,000 per year. The cost of the equipment is $6,605,523.00. Merton expects it to have a 12-year useful life and a zero salvage value. The company has established an investment opportunity hurdle rate of 15 percent and uses the straight-line method for depreciation. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)

Required
a.	Calculate the internal rate of return of the investment opportunity.

b.

Indicate whether the investment opportunity should be accepted.

	Rejected
	Accepted