Scheer corporation is involved in the business of injection

Reference no: EM13574702

Scheer 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 $438,100. 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 $106,557 for the next 6 years. Management requires a 14% rate of return on all new investments.

A) Calculate the internal rate of return on this new machine. (Use the tables to determine the percentage. Round answer 0 decimal places, e.g. 10.)Internal rate of return= %Should the investment be accepted?

Reference no: EM13574702

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