Need to determine the internal rate of return percentage

NovakHammocks is considering the purchase of a new weaving machine to prepare fabric for its hammocks. The machine under consideration costs $86,500and will save the company $13,000in direct labor costs. It is expected to last10years.

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(a)Calculate the internal rate of return on the weaving machine.(Round answer to 0 decimal place, e.g. 15.)

Internal rate of returnenter the internal rate of return in percentages rounded to 0 decimal places

%

(b)IfNovakuses a10% hurdle rate, should the company invest in the machine?

select an option

NoYes