Tries 13 Send MacBook Pro SolutionWe can calculate internal

Tries 1/3 Send MacBook Pro

We can calculate internal rate of return by way of trial andd error method as depicted below by discounting each years cash flow assumin a discounting rate i.e. internal rate of return. The rate which gives the total of all discounted cash flows equivalent to the cosst of machinery i.e. $150000 would be the internal rate of return.

Thus from the above computation, we can conclude that the internal rate of return is 3% p.a. as the total of discounted cash flows using this rate is equal to the cost of maachine i.e. $150000

Year	Cash Flow	PV factor	Disc CF
		5% p.a.
1	27690	0.952381	26371.43
2	27690	0.907029	25115.65
3	27690	0.863838	23919.66
4	27690	0.822702	22780.63
5	27690	0.783526	21695.84
6	27690	0.746215	20662.7
		Total	140545.9

Year	Cash Flow	PV factor	Disc CF
		4% p.a.
1	27690	0.961538	26625
2	27690	0.924556	25600.96
3	27690	0.888996	24616.31
4	27690	0.854804	23669.53
5	27690	0.821927	22759.16
6	27690	0.790315	21883.81
		Total	145154.8

Year	Cash Flow	PV factor	Disc CF
		3% p.a.
1	27690	0.970874	26883.5
2	27690	0.942596	26100.48
3	27690	0.915142	25340.27
4	27690	0.888487	24602.21
5	27690	0.862609	23885.64
6	27690	0.837484	23189.94
		Total	150002

Tries 1/3 Send MacBook Pro SolutionWe can calculate internal rate of return by way of trial andd error method as depicted below by discounting each years cash

Tries 13 Send MacBook Pro SolutionWe can calculate internal

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