Mo Salah, owner of Liverpool Limited, was approached by a local dealer in air conditioning units. The

dealer proposed replacing the old cooling system of the company with a modern, more efficient system. The

cost of the new system was quoted at R$140000,$ but it would save R$30000$ per year in energy costs. The

estimated life of the new system is $10$ years, with no salvage value expected. All capital projects are required

to earn at least the firms cost of capital at $10\%.$

Required:

Calculate the projects Internal Rate of Return $($IRR$).(6$ marks$)$