Patsy folson is evaluating what appears to be an attractive

Reference no: EM13586316

Patsy Folson is evaluating what appears to be an attractive opportunity. She is currently the owner of a small manufacturing company and has the opportunity to acquire another small company's equipment that would provide production of a part currently purchased externally. She estimates that the savings from internal production will be $75,000 per year. She estimates that the equipment will last 10 years. The owner is asking $400,000 for the equipment. Her company's cost of capital is 8 percent. Calculate the IRR for Patsy Folson's project. Round your answer to the nearest percent.

Reference no: EM13586316

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