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Susan Company is debating if they should purchase a new machine for is factory operations at a cost of $745,200. The investment is expected to

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Susan Company is debating if they should purchase a new machine for is factory operations at a cost of $745,200. The investment is expected to generate $150,000 in annual cash flows fora period of eight years The requured rate o retur is 10% The old machire has are annglfe f e t years The ew machine se pee ed haves value a he end of the eightminus-year period. The disposal value of the old machine at the time of replacement is zero. The (Click the icon to view the Future Value of $1 factors) Cliek the icon to view the Future Value of Annuity of $1 factors) (Cick the icon to view the Present Value of Annuty of $1 factors) (Click the 'con to view the Present Value of $1 factors) Requirement 1: What is the Internal Rate of Return of this investment that Susan Company is making? OA, 10% OB, 14% C. 1296 OD, 8% Requirement 2: Should Susan Company purchase the new machine? Why? O A. Yes, as the internal rate of return is the same as their required rate of return O B. Yes, as the internal rate of reurn is more than their required rate of return O C. There is no way to tell if they should make this investment just based on the Internal Rate of Return O D. No, as the internal rate of retums less than their requred rate of return

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