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Kendra Corporation is involved in the business of injection moulding of plastics. It is considering the purchase of a new computer- aided design and
Kendra 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 $426,600. The company believes that with this new machine it will improve productivity and increase quality, resulting in a $115,400 increase in net annual cash flows for the next five years. Management requires a 13% rate of return on all new investments. Click here to view PV table. Calculate the internal rate of return on this new machine. (Round answer to O decimal places, e.g. 10%. For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.52124.) Internal rate of return Should management accept the investment? The investment be accepted. de %
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