REQUIRED

Answer the following questions based on the information provided below:

$5\mathrm{.}2\mathrm{.}1$

Calculate the Internal Rate of Return $($expressed to two decimal places$).$ Your answer must include two net present value calculations $($using consecutive cost of capital rates$)$ and interpolation.

$(6$ marks$)$

$5\mathrm{.}2\mathrm{.}2$

Based on the IRR should the company consider purchasing the machine? Why?

$(1$ mark