The management of Ripon Corporation is considering the purchase of an automated molding machine that would cost $203,255. The machine would have a useful life of 5 years and no salvage value. The automated molding machine would result in cash savings of $65,000 per year due to lower labor costs and other costs. (Ignore income taxes).

Required:

Using the tables in Exhibit 14B-1 and Exhibit 14B-2, determine the internal rate of return on the investment in the new automated molding machine.