Question
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
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 $428,200. The company believes that with this new machine it will improve productivity and increase quality, resulting in a $107,200 increase in net annual cash flows for the next five years. Management requires a 10% 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 0 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 enter the internal rate of return rounded to 0 decimal places % Should management accept the investment? The investment select wether the investment should be accept or not be accepted
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