Sunland Corporation is involved in the business of injection moulding of plastics. It is considering...
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Sunland Corporation is involved in the business of injection moulding of plastics. It is considering the purchase of a new computeraided design and manufacturing machine for $ The company believes that with this new machine it will improve productivity and increase quality, resulting in a $ increase in net annual cash flows for the next five years. Management requires a rate of return on all new investments.
Click here to view the factor table.
Calculate the internal rate of return on this new machine. Round answer to decimal places, eg For calculation purposes, use decimal places as displayed in the factor table provided, eg
Internal rate of return
Should management accept the investment?
The investment be accepted.
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