Exercise 9-11 Monty Hammocks is considering the purchase of a new weaving machine to prepare fabric for its hammocks. The machine under consideration costs $73,667 and will save the company $10,000 in direct labor costs. It is expected to last 14 years.

(a) Calculate the internal rate of return on the weaving machine.

Internal rate of return % =

(b) If Monty uses a 12% hurdle rate, should the company invest in the machine?