A company is considering investing in a new machine that requires a cash payment of $ 47,946

Question:

A company is considering investing in a new machine that requires a cash payment of $ 47,946 today. The machine will generate annual cash flows of $ 21,000 for the next three years. What is the internal rate of return if the company buys this machine?

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...