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.

Calculate the internal rate of return on the weaving machine. (Round answer to 0 decimal place, e.g. 15.)

Internal rate of return

If Ayayai uses a 7% hurdle rate, should the company invest in the machine?