A machine that costs $12,000 is expected to operate for 10 years. The estimated salvage value at the end of 10 years is $0. The machine is expected to save the company $2,331 per year before taxes and depreciation. The company depreciates its assets on a straight-line basis and has a marginal tax rate of 40 percent. The firm's cost of capital is 14 percent. (Hint: Present value of an ordinary annuity of $1 for 10 years is $6.1446 at the What is the internal rate of return (IRR) for the machine? discount rate of 10% and $6.4177 at the discount rate of 9%.) Based on the IRR criterion, should this machine be purchased? No Yes