Question: A firm is considering purchasing a new seed-counting machine. The machine will cost $67,000 and will have a 2-year service life. The selling price of

A firm is considering purchasing a new seed-counting machine. The machine will cost $67,000 and will have a 2-year service life. The selling price of the machine at the end of 2 years is expected to be $26,000 in today's dollars. The machine will generate annual revenues of $49,000 (today's dollars), but the company expects to have annual expenses of $7000 (today's dollars). The asset is classified as a 7-year MACRS property. The tax rate for the company is 21%. The general inflation rate is 7% and will impact the annual revenue, annual expenses, and salvage value. What is the inflation-free IRR' for this machine? Express your answer as a percentage between 0 and 100 rounded to the nearest tenth of a percent."

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