at a cost of $22,802. The machine will provide $3,500 per year in cash flow for nine years. King's has a cost of capital of 10 percent. Using the internal rate of return method, evaluate this project and indicate whether it should be undertaken. 13. Home Security Systems is analyzing the purchase of manufacturing equipment that will cost $50,000. The annual cash inflows for the next three years will be: Year Cash Flow $25,000 2 3 23,000 18,000 a. Determine the internal rate of return. With a cost of capital of 18 percent, should the machine be purchased? Aerospace Dynamics will invest $110,000 in a project that will produce the following cash flows. The cost of capital is 11 percent. Should the project be undertaken? (Note that the fourth year's cash flow is negative.) b. 14