What is the IRR for this project cashflow?

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter12: Cash Flow Estimation And Risk Analysis
Section: Chapter Questions
Problem 10P: Dauten is offered a replacement machine which has a cost of 8,000, an estimated useful life of 6...
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You have been asked to select an alternative project based on its IRR. The project invovles buying a new poliching machine that will replace three workers who polish the parts by hand. The machine will cost $375,280 in year 1. The workers each cost $31,000 per year in salary and benefits. The machine will require and expected $1500 per year in maintenance and will have a useful lifespan of 9 years. At the end of 9 years, the machine will have an expected salvage value of $7000. Your corporate WACC is 5%. What is the IRR for this project cashflow?

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