A company is considering the purchase of a new system for manufacturing pre-cast concrete beams that costs $800k and will benefit them annually by increasing their sales. The machine expected service life is 5, 7, or 8 years with probabilities of 25%, 40% and 35% respectively. They know that the more they use the machine each year, the lower its salvage value would be as shown on the following decision tree. What is the probability that the Internal Rate of Return of this investment is over 18%? SALVAGE LIFE BENEFIT 5yrs torcision) 2.3% factsial $800k 74 40% sys Decision $200k/yr Sx2ook $250k/yr SEAisok 43004 y Sedlook $18067yr S20405 &$250Hyr Slook 8 160k/yr selook S$ 180k fyr SubBok EQUIPMENT ACQUISTION DECISION 35%