TimeLight's integrated time clock and payroll system sells for $231,945. At this price, the annual cost savings

Question:

TimeLight's integrated time clock and payroll system sells for $231,945. At this price, the annual cost savings that the system will generate for Space Solutions, a facilities management company, over its eight-year life will yield an internal rate of return of 14%. Space Solutions requires that all projects achieve a minimum return of 16%.

Required

What price does Space Solutions need to negotiate with TimeLight so that the system will achieve that return?

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...