What is the IRR for a machine over a 6-year project life with the following details:

	Machine C
Initial cost	$85,000
Life in years	2
Salvage after life	20%
Benefits 1st year	$95,000
Costs 1st year	$58,000
Benefit increase per year	4.50%
Inflation	2.50%
All costs and benefits keep increasing every year even when a new machine is bought.

Answers:	10.7%
	11.3%
	12.9%
	14.4%

Could you work the problem out in excel and show the steps you use to solve the problem?

thanks for your help!!