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Bonita Corporation is involved in the business of injection moulding of plastics. It is considering the purchase of a new computer-aided design and manufacturing machine
Bonita Corporation is involved in the business of injection moulding of plastics. It is considering the purchase of a new computer-aided design and manufacturing machine for $446,100. The company believes that with this new machine it will improve productivity and increase quality, resulting in a $120,700 increase in net annual cash flows for the next five years. Management requires a 14% rate of return onall new imvestments: Click here to view the factor table. Calculate the internal rate of return on this new machine. (Round answer to 0 decinal places, es. 10x. For colculotion purposes, use 5 decimal ploces as disployed in the foctor toble provided, es 1.52124.) Should management accept the imvestment
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