Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. sunland corporation is involved in the business of

Sunland Corporation is involved in the business of injection moulding of plastics. It is considering...

80.2K

Verified Solution

Question

Accounting

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 $426,100. The company believes that with this new machine it will improve productivity and increase quality, resulting in a $109,500 increase in net annual cash flows for the next five years. Management requires a 13% 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 0 decimal places, e.g.10%. For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g.1.52124.)
Internal rate of return
Should management accept the investment?
The investment be accepted.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students