Whispering Winds Hammocks is considering the purchase of a new weaving machine to prepare fabric for its hammocks. The machine under consideration costs $147,200 and will save the company $20,000 in direct labor costs. It is expected to last 10 years.

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

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

(b) If Whispering Winds uses a 8% hurdle rate, should the company invest in the machine?