A new manufacturing device costs 10,000 to buy
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A new manufacturing device costs 10,000 to buy

A new manufacturing device costs $10,000 to buy, but produces annual benefits of $3250 in reduced production costs. The device will operate for 4 years, at which time it will have no resale value. What is the internal rate of return on this investment? TIL

Hint
Accounts & FinanceThe internal rate of return (IRR) is the annual rate of growth that an investment is expected to generate. IRR is calculated using the same concept as net present value (NPV), except it sets the NPV equal to zero. Example: $100 invested today with a 20% return on investment would yield $120 in the future. Working backwards, a future value of $120 at a discount rate of 20% wou...

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