Mc Gee Corporation Recently Purchased a New Machine for Its

Essay

Mc Gee Corporation recently purchased a new machine for its factory operations at a cost of $840000. The investment is expected to generate $250000 in annual cash flows for a period of five years. The required rate of return is 12%. The new machine is expected to have zero salvage value at the end of the five-year period.
Instructions
Calculate the internal rate of return. (Table 2 from Appendix C is needed.)