IBM recently saved $250 million over three years by implementing supply chain software that reduced the cost

Question:

IBM recently saved $250 million over three years by implementing supply chain software that reduced the cost of components used in its manufacture of computers. If we assume that the savings occurred equally over the three years and the cost of implementing the new software was $175,500,000, what would be the internal rate of return for this investment?

Use the present value of an annuity of $1 table found in Exhibit 2 in determining your answer.

Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment... Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...