Internal Rate of Return Analysis White Mountain Mining, LLC is considering the purchase of a new piece of machinery. The initial cost of the machine will be $6,000,000 and the machine will have a useful life of five years. The companys hurdle rate is 8%. The following cash flow projections have been made:

Internal Rate of Return Analysis White Mountain Mining, LLC is considering the purchase of a new piece of machinery. The initial cost of the machine will be $6,000,000 and the machine will have a useful life of five years. The company's hurdle rate is 8%. The following cash flow projections have been made: Year 1 $1,170,000 Year 2 $1,820,000 Year 3 $2,470,000 Year 4 $1.920,000 Year 5 $1,470,000 Calculate the internal rate of return for the machinery. Use Excel to compute your answers. Round answers to the nearest whole percentage (ex: 0.1854 = 19%) Should White Mountain purchase the machinery? O No, since the hurdle rate exceeds the internal rate of return. Yes, since the internal rate of return exceeds the hurdle rate