The manager of Soft & Creamy Ice Cream is thinking of buying a new soft ice cream

Question:

The manager of Soft & Creamy Ice Cream is thinking of buying a new soft ice cream machine. The machine will cost $25,000 and will last 10 years. Soft ice cream sales are expected to generate $4,500 in income per year.

Required:

What is the internal rate of return on this project?

Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...