Assuming that all sales are for cash, what is the internal rate of return on the project

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Assuming that all sales are for cash, what is the internal rate of return on the project in Question 46.15A?


Data from Question 46.15

The annual profit forecast for a project is:

The project requires that a new machine be purchased for £128,000. It will be depreciated using the straight line method over five years to a residual value of £8,000. The project will cease when the machine is sold for £8,000 at the end of the fifth year. Ignoring taxation, what is the accounting rate of return?

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