The Pearce Club, Inc., is considering investing in an exercise machine that costs $5,000 and would increase

Question:

The Pearce Club, Inc., is considering investing in an exercise machine that costs $5,000 and would increase revenues by $1,500 a year for five years.

Required

Use Excel to calculate the equipment’s internal rate of return (ignore income taxes). Round your answer to two decimals.

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...