A renewable energy system is being evaluated by an office
building, its initial cost is $25,850. This system is estimated to
provide energy savings equivalent to a cut-off of $5,250 from the
annual electricity bill. Annual operation and maintenance costs are
estimated to be just $830. This system has a useful life of 10
years with no salvage value.
what is the Internal Rate of Return (IRR) of this renewable
energy system ?