The following information are provided concerning a future investment.

The investment is $142 950, the net annual cash inflow is $37 500, the estimated life of the equipment is 7 years.

Compute the following assuming a tax rate of 30%. (Straight line depreciation)

Assume that $30 000 per year is achieved and that at the end of 5 years the equipment is sold for $61 375, compute the IRR.