Calculate the internal rate of return on this new machine

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Reference no: EM13777560

Eisler Corporation is involved in the business of injection molding of plastics. It is considering the purchase of a new computer-aided design and manufacturing machine for $449,600. The company believes that with this new machine it will improve productivity and increase quality, resulting in an increase in net annual cash flows of $118,801 for the next 6 years. Management requires a 10% rate of return on all new investments. (Refer the below table)

a. Calculate the internal rate of return on this new machine.

b. Should the investment be accepted?

Reference no: EM13777560

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