Problem
Leven Rehabilitation Center, a training service, is investigating the purchase of a new energy-efficient cold coffee bottling machine that has a projected life of 15 years. It is estimated that the machine will save $20,000 per year in cash operating costs.
1. What is the machine's internal rate of return if it costs $111,500 new?
2. Is the machine an acceptable investment? Explain.
3. What risks should be included?
Complete the questions using Microsoft Excel and submit.