Answer options for Question 10 in Bold

Lockwood (should/ should not) invest in the machinery. The expected ARR is (Less/ More) than the company's required rate of return

DATA TABLE

Lockwood Company is considering a capital investment in machinery : (Click the icon to view the data.) 8. Calculate the payback. 9. Calculate the ARR. Round the percentage to two decimal places. 10. Based on your answers to the above questions, should Lockwood invest in the machinery? 8. Calculate the payback. = ] = Payback years 9. Calculate the ARR. Round the percentage to two decimal places. | = ARR 10. Based on your answers to the above questions, should Lockwood invest in the machinery? Lockwood invest in the machinery. The expected ARR is than the company's required rate of return. Data Table $ 600,000 50,000 Initial investment Residual value Expected annual net cash inflows Expected useful life Required rate of return 100,000 8 years 12%