Testbank Exercise 5 General Hospital is planning to add a new diagnostic machine which should improve its quality of certain blood tests. The machine under consideration has a cost of $85,876 and is expected to save the hospital $8,600 each year. The machine has an expected useful life of 13 years.

(a) Calculate the internal rate of return on the diagnostic machine. (Round answer to 0 decimal places, e.g. 16%.)

Internal rate of return

%