PRINTER VERSION BACK NEX Question 3 RealTurf is considering purchasing an automatic sprinkler system for its sod farm by borrowing the entire $75,000 purchase price. The loan would be repaid with four equal annual payments at an interest rate of 12%/year. It is anticipated that the sprinkler system would be used for 9 years and then sold for a salvage value of $9,000. Annual operating and maintenance expenses for the system over the 9-year life are estimated to be $15,000 per year. If the new system is purchased, cost savings of $25,000 per year will be realized over the present manual watering system. RealTurf uses a MARR of 15%/year for economic decision making. Show the internal rate of return used to reach your decision: % Based on an internal rate of return analysis, is the purchase of the new sprinkler system economically attractive? O Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is +0.2. Click here to access the TVM Factor Table Calculator LINK TO TEXT LINK TO TEXT LINK TO VIDEO