(Ignore income taxes in this problem) 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:

A) 9%
B) 11%
C) 12%
D) 10%

Internal Rate

Often referring to the internal rate of return (IRR), which is the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Operating Costs

Expenses associated with the day-to-day functions of a business, excluding costs related to direct production of goods or services.

Useful Life

The estimated period over which a fixed asset is expected to be useful for the purpose it was acquired.