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www.offshoregroup.com Welcome to C & M Corporation’s Mexico cable assemblies manufacturing facility. C& M Corporation’s manufacturing in Mexico plant is located in Empalme, which is located in the south of the border state of Sonora in The Offshore Group’s Bella Vista industrial park. The facility is strategically located with access to the main state highway, and is less than 250 miles away from the US / Mexico border, Nogales Arizona. It features 18650 square feet which include: a warehouse, shipping and receiving docks and a continuously improved production floor. This manufacturing facility also features several lean cells, which cover more than 65 percent of the total production output. Each one of them has a highly motivated high performance team, with knowledge of lean manufacturing principles, to achieve one-piece flow, guided by a support team member that trains, helps and make things happen. This allows for low-volume and high-mix manufacture of cable assemblies, custom wire and cable and coil cords. C & M Mexico facility has a segregated production area, ideal for medical device manufacturing in Mexico, which requires special handling conditions. Injection molding services include top-notch equipment, aided by C & M tooling design capabilities to deliver high quality injection molding solutions. Custom cable assemblies manufacturing services are provided through coil cords capabilities. C & M Mexico performs complete electrical and mechanical First Article …
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Question by 365 Days: Kendra 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 5,000. 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 ,000 for the next 6 years. Management requires a 10% rate of return on all new investments.

Calculate the internal rate of return on this new machine.

Best answer:

Answer by Robert M
6 Year Statement of Cash Flows
Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6

Net Cashflow -5K K K K K K K IRR = 9%

Management should not purchase the machine.

What do you think? Answer below!