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Business, 07.07.2020 18:01 GaudySky

Bruno 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 $430,300. 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 $98,800 for the next 6 years. Management requires a 10% rate of return on all new investments Required:
a. Calculate the internal rate of return on this new machine. Should the investment be accepted?
b. Calculate cash payback period, internal rate of return, and apply decision rules.

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Bruno Corporation is involved in the business of injection molding of plastics. It is considering th...

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