Joe "The Hacker" Smith is a very sophisticated drug dealer. He has a front company that has a cash scanning machine that is in good condition, but a new model has come out that user laser scanning technology to do a better job of finding counterfeit bills. The old machine has an estimated remaining life of 5 years and depreciation of $10,000 per year. It could currently be sold for $60,000, but it will have a zero estimated salvage value in another five years. The new machine will cost $125,000 and although it will not change revenues, it is expected to save the "company" $35,000 per year in costs from counterfeit bills. The new machine will be depreciated straight line over 5 years and isn't expected to be worth anything at the end of 5 years. The firm's tax rate is 30% and their required rate of return on this low-risk project is 10%. What is the IRR of the project? 34.25% O 32.01% 0 29.97% 0 27.53% Joe "The Hacker" Smith is a very sophisticated drug dealer. He has a front company that has a cash scanning machine that is in good condition, but a new model has come out that user laser scanning technology to do a better job of finding counterfeit bills. The old machine has an estimated remaining life of 5 years and depreciation of $10,000 per year. It could currently be sold for $60,000, but it will have a zero estimated salvage value in another five years. The new machine will cost $125,000 and although it will not change revenues, it is expected to save the "company" $35,000 per year in costs from counterfeit bills. The new machine will be depreciated straight line over 5 years and isn't expected to be worth anything at the end of 5 years. The firm's tax rate is 30% and their required rate of return on this low-risk project is 10%. What is the IRR of the project? 34.25% O 32.01% 0 29.97% 0 27.53%