a) 8%

b) 8.5%

c) 9.7 %

d) 10 %

A company is considering acquiring new machinery whose initial investment is $ 1,950,000 and is expected to generate an after-tax cash flow of $ 450,000 per year in the next 6 years. The required rate of return is 9%. Calculate the internal rate of return (IRR) of the project