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Question - Latin Cuisine is considering the purchase of new food processing technology, which would cost $1,800,000 and would generate $300,000 in annual cost savings. No salvage is expected on the technology at the end of its 10-year life. The firm's cost of capital and discount rate are both 10 percent.
Use Table 1 and Table 2 present value tables to solve following problems.
a. Calculate the internal rate of return for the project. Round your answer to the nearest one-half of one percent (for example, a computed answer of .0838 would be entered in the answer box as "8.5").
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