Quip Corporation wants to purchase a new machine for $340,000. Management predicts that the machine will produce sales of $230,000 each year for the next 5 years. Expenses are expected to include direct materials, direct labor, and factory overhead (excluding depreciation) totaling $90,000 per year. The firm uses the straight-line depreciation and expects the machine to have a residual value of $57,000. Quip's combined income tax rate, t, is 50.00%. The required rate of return is 10.00%
What is the IRR?