Use the information provided below to calculate the Internal Rate of Return (expressed to two decimal places) using interpolation. INFORMATION A machine with a purchase price of R1 200 000 is estimated to eliminate manual operations by R400 000 per year. The machine is expected to have a useful life of four years.

Managerial Accounting
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ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 2E: Average rate of returncost savings Maui Fabricators Inc. is considering an investment in equipment...
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Use the information provided below to calculate the Internal Rate of Return (expressed to two
decimal places) using interpolation.

INFORMATION
A machine with a purchase price of R1 200 000 is estimated to eliminate manual operations by R400 000 per year.
The machine is expected to have a useful life of four years. 

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