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(Ignore income taxes in this problem.) Company B is considering the purchase of a machine costing $15,000. Estimated cash savings from using the new machine
- (Ignore income taxes in this problem.) Company B is considering the purchase of a machine costing $15,000. Estimated cash savings from using the new machine are $3,826 per year. The machine will have no salvage value at the end of its useful life of seven years and the hurdle rate for Company B is 18%.
- The machine's internal rate of return is closest to:
- Should Company B accept the project?
- Why should Company B accept or reject the project?
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