The pearce club inc is considering investing in an exercise


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The Pearce Club, Inc., is considering investing in an exercise machine that costs $5,000 and would increase revenues by $1,500 a year for five years. The machine would be depreciated over its five-year useful life via the straight-line method and would have no salvage value.

Required:

Calculate the equipment's internal rate of return. Assume that the tax rate is 30 percent. Do not enter the percent sign (%). Round your final answer to two decimal places.

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Financial Accounting: The pearce club inc is considering investing in an exercise
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