Concord Hammocks is considering the purchase of a new weaving machine to prepare fabric for its hammocks. The machine under consideration costs $162,218 and will save the company $20,000 in direct labor costs. It is expected to last 10 years. Click here to view the factor table. (a) Calculate the internal rate of return on the weaving machine. (Round answer to 0 decimal place, e.g. 15.)

Internal rate of return

%

(b) If Concord uses a 6% hurdle rate, should the company invest in the machine?

No Yes