ordon Corporation is considering the acquisition of a new machine that costs $149,040. The machine is expected to have a four-year service life and will produce annual savings in cash operating costs of $45,000. Gordon evaluates investments by using the internal rate of return and ignores income taxes. Compute the machine's internal rate of return.  Give your answer in decimal form.

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Chapter11: Capital Budgeting Decisions
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ordon Corporation is considering the acquisition of a new machine that costs $149,040. The machine is expected to have a four-year service life and will produce annual savings in cash operating costs of $45,000. Gordon evaluates investments by using the internal rate of return and ignores income taxes.

Compute the machine's internal rate of return.  Give your answer in decimal form.  

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