King’s Department Store is contemplating the purchase of a new machine at a cost of $17,180. The machine will provide $3,300 per year in cash flow for seven years. King’s has a cost of capital of 12 percent. Use Appendix D for an approximate answer but calculate your final answer using the financial calculator method.
a. What is the internal rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Internal Rate of Return %