Question: The Comil Corporation recently purchased a new machine for its factory operations at a cost of $390,875. The investment is expected to generate $125,000 in annual cash flows for a period of five years. The required rate of return is 14%. The old machine has a remaining life of five years. The new machine is expected to have zero value at the end of the five-year period. The disposal value of the old machine at the time of replacement is zero. What is the internal rate of return?