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Calculate the internal rate of return on this new machine

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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 for $425,100. The company believes that with this new machine it will improve productivity and increase quality, resulting in a $100,900 increase in net annual cash flows for the next five years. Management requires a 10% rate of return on all new investments. Calculate the internal rate of return on this new machine. Should management accept the investment?

Reference no: EM133053715

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