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Ayayai Hammocks is considering the purchase of a new weaving machine to prepare fabric for its hammocks. The machine under consideration costs $77,217 and will
Ayayai Hammocks is considering the purchase of a new weaving machine to prepare fabric for its hammocks. The machine under consideration costs $77,217 and will save the company $10,000 in direct labor costs. It is expected to last 10 years. (a) Calculate the internal rate of return on the weaving machine. (Round answer to 0 decimal place, e.g. 15.)
Internal rate of return | enter the internal rate of return in percentages rounded to 0 decimal places % |
(b) If Ayayai uses a 7% hurdle rate, should the company invest in the machine? select an option Yes No
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