Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return

Follow the format shown in Exhibit $12$B$\mathrm{.}1$ and Exhibit $12$B$\mathrm{.}2$ as you complete the requirement below.

Woodard Company wants to buy a numerically controlled $($NC$)$ machine to be used in producing specially machined parts for manufacturers of trenching machines. The outlay required is $$625,434.$ The NC equipment will last five years with no expected salvage value. The expected after$-$tax cash flows associated with the project follow:

Year Cash Revenues Cash Expenses

$1$ $$1,200,000$ $$1,000,000$

$21,200,0001,000,000$

$31,200,0001,000,000$

$41,200,0001,000,000$

$51,200,0001,000,000$

Required:

Compute the Investment's Internal Rate of return. Enter as a percent. If required, round your answer to the nearest whole percent.

IRR $=$ fill in the blank $1$ of $1\%$