Problem:
Hincapie Manufacturing is evaluating investing in a new metal stamping machine costing $30,924. Hincapie estimates that it will realize $12,000 in annual cash inflows for each year of the machine's 3-year useful life.
Approximately, what is the internal rate of return (IRR) for the machine? (Use present value tables or Excel.)
Explain comprehensively and provide step by step solution.