M&M Corporation recently purchased a new machine for

$339,000

with a ten-year life. The old equipment has a remaining life of ten years and no disposal value at the time of replacement. Net annual cash flows will be

$60,000

per year. What is the internal rate of return? Present value factor of ordinary annuity at

8%

for 10 years is 6.710 , at

10%

is 6.145 and at

12%

is 5.65 .

M\&M Corporation recently purchased a new machine for $339,000 with a ten-year life. The old equipment has a remaining life of ten years and no disposal value at the time of replacement. Net annual cash flows will be $60,000 per year. What is the internal rate of return? Present value factor of ordinary annuity at 8% for 10 years is 6.710 , at 10% is 6.145 and at 12% is 5.65