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Calculate the internal rate of return on the weaving machine

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Reference no: EM133021315

Question - Ayayai Hammocks is considering the purchase of a new weaving machine to prepare fabric for its hammocks. The machine under consideration costs $77,217 and will save the company $10,000 in direct labor costs. It is expected to last 10 years. Calculate the internal rate of return on the weaving machine. If Ayayai uses a 7% hurdle rate, should the company invest in the machine?

Reference no: EM133021315

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