Teach Engineering Company is thinking of buying of new machine to replace existing on The old machine was bought 5 year sago at the cost of 20,000, and it is being depreciated on the straight line basic to zero salvage value over 10-year life. Current market value of old machine is 14,000. New machine, that falls into M ACRS5-yearclass, has evaluated life of five years, it costs 30.000, and Teach plans to sell machine at the end of fifth year for 1,000. New machine is anticipated to generate be fore-tax cash savings of 3,000 per year. Company's tax rate is 40%. Determine IRR of proposed project?