The management of elamin corporation is considering the purchase of a machine that would cost $365,695 and would have a useful life of 9 years. the machine would have no salvage value. the machine would reduce labor and other operating costs by $61,000 per year. the internal rate of return on the investment in the new machine is closest to (ignore income taxes.):

Internal Rate of Return (IRR)9,00%

Explanation:

We use excel or a spreadsheet to calculate this ratio. See document attached.

We use a cash flow to solve this problem.

At moment 0 we have the investment cost , in this case  $365,695. From period 1 to period 9, we have incomes o benefits of $61,000. Then, we calculate the Net cash flow that is the difference between benefits and cost.

We use all the result (positive and negative) in Net cash flow to get the IRR.  

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o

answer; break-even analysis;