Answer Happy

Current Attempt in Progress Sandhill 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 $442,800. 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 $107,700 for the next 6 years. Management requires a 10% 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 O decimal places, eg. 13%. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Internal rate of return % Should the investment be accepted? The investment be accepted.
TABLE 1 Future Value of 1 (n) Periods 0 1 2 3 4 5 ONmir 6 7 8 9 10 O 000 4% 5% 1.00000 1.00000 1.04000 1.05000 1.08160 1.10250 1.12486 1.15763 1.16986 1.21551 1.21665 1.27628 1.26532 1.34010 1.31593 1.40710 1.36857 1.47746 1.42331 1.55133 1.48024 1.62889 1.53945 1.71034 1.60103 1.79586 1.66507 1.88565 1.73168 1.97993 1.80094 2.07893 1.87298 2.18287 1.94790 2.29202 2.02582 2.40662 2.10685 2.52695 2.19112 2.65330 6% 7% 1.00000 1.00000 1.06000 1.07000 1.12360 1.14490 1.19102 1.22504 1.26248 1.31080 1.33823 1.40255 1.41852 1.50073 1.50363 1.60578 1.59385 1.71819 1.68948 1.83846 1.79085 1.96715 1.89830 2.10485 2.01220 2.25219 2.13293 2.40985 2.26090 2.57853 2.39656 2.75903 2.54035 2.95216 2.69277 3.15882 2.85434 3.37993 3.02560 3.61653 3.20714 3.86968 8% 1.00000 1.08000 1.16640 1.25971 1.36049 1.46933 1.58687 1.71382 1.85093 1.99900 2.15892 2.33164 2.51817 2.71962 2.93719 3.17217 9% 1.00000 1.09000 1.18810 1.29503 1.41158 1.53862 1.67710 1.82804 1.99256 2.17189 2.36736 2.58043 2.81267 3.06581 3.34173 3.64248 3.97031 4.32763 4.71712 5.14166 5.60441 10% 11% 12% 1.00000 1.00000 1.00000 1.10000 1.11000 1.12000 1.21000 1.23210 1.25440 1.33100 1.36763 1.40493 1.46410 1.51807 1.57352 1.61051 1.68506 1.76234 1.77156 1.87041 1.97382 1.94872 2.07616 2.21068 2.14359 2.30454 2.47596 2.35795 2.55803 2.77308 2.59374 2.83942 3.10585 2.85312 3.15176 3.47855 3.13843 3.49845 3.89598 3.45227 3.88328 4.36349 3.79750 4.31044 4.88711 4.17725 4.78459 5.47357 4.59497 5.31089 6.13039 5.05447 5.89509 6.86604 5.55992 6.54355 7.68997 6.11591 7.26334 8.61276 6.72750 8.06231 9.64629 15% 1.00000 1.15000 1.32250 1.52088 1.74901 2.01136 2.31306 2.66002 3.05902 3.51788 4.04556 4.65239 5.35025 6.15279 7.07571 8.13706 9.35762 10.76126 12.37545 14.23177 16.36654 11 12 13 14 15 16 17 18 19 20 3.42594 3.70002 3.99602 4.31570 4.66096