Excaliber is considering the acquisition of a
$ machine that is expected to produce
annual savings in cash operating costs of $
over the next six years. If Excaliber uses the internal
rate of return IRR to evaluate new investments and
the company has a hurdle rate of which of the
following statements is correct, using the tables
that follow?
The machine's IRR is less than and the machine
should not be acquired
The machine's IRR is approximately and the
machine should not be acquired
The machine's IRR is approximately and the
machine should be acquired
The machine's IRR is approximately and the
machine should be acquired
All of the statements are false
