Question: 10 QUESTION 4 The management of Lusa Realty (https://lusarealty.com) is considering replacing an old construction machine with a new one this year (i.e. at t=0).

 10 QUESTION 4 The management of Lusa Realty (https://lusarealty.com) is considering

10 QUESTION 4 The management of Lusa Realty (https://lusarealty.com) is considering replacing an old construction machine with a new one this year (i.e. at t=0). The new machine will be capable of performing some tasks much faster than the old one. The installation of the new machine now (i.e. at t=0) will cost $90,000. The new machine will start working from next year and will last for 6 years (i.e. from t=1 till and including t=6). This new machine will help Lusa Realty to reduce the annual labor cost by $25,000 (i.e. Lusa Realty will have an annual cash inflow of $25,000) during its lifetime. What is the IRR of Lusa Realty's investment in this new machine? Put only the percentage value; that is, if the answer is 20.51%, write your answer as 20.51. Round your answer to two decimal places

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