Vaughn, Inc. is considering purchasing equipment costing $$29000$ with a $7-$year useful life. The

equipment will provide cost savings of $$5960$ and will be depreciated straight$-$line over its useful

life with no salvage value. Vaughn Inc. requires a $8\%$ rate of return. What is the approximate

internal rate of return for this investment?

Present Value of an Annuity of $1$

Period $6\%7\%8\%9\%10\%13\%$

$75\mathrm{.}5825\mathrm{.}3895\mathrm{.}2065\mathrm{.}0334\mathrm{.}8684\mathrm{.}423$

$10\%$

$8\%$

$9\%$

$7\%$