Qno 8

Blossom Corporation is involved in the business of injection moulding of plastics. It is considering the purchase of a new computeraided 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 the factor 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 % Should management accept the investment? The investment be accepted. Blossom Corporation is involved in the business of injection moulding of plastics. It is considering the purchase of a new computeraided 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 the factor 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 % Should management accept the investment? The investment be accepted