Wendell's Donut Shoppe is investigating the purchase of a new18,600 donut-making machine. The machine would permit the company to reduce the amount of part-time help needed, at a cost savings of $3,800 per year. In addition, the new machine would allow the company to produce one new style of donut, resulting in the safe of 1,000 dozen more donuts each year. The company realizes a contribution margin of $1.20 per dozen donuts sold. The new machine would have a six-year useful life.

Annual cash flows= 5000

Investment required= 18600

Factor= 3.720

Number of years= 6

Internal rate of return= 16%

In addition to the data given previously, assume that the machine will have a 9,125 salvage value at the end of six years. Under these conditions, compute the internal rate of return to the nearest whole percent