b. With a cost of capital of 12 percent, should the machine be purchased?

c. With information from part b, compute the PI. (Round the final answer to 3 decimal places.)

Elgin Restaurant Supplies is analyzing the purchase of manufacturing equipment that will cost $20,000. The annual cash inflows are as follows. Year Cash Flow $10,000 9,000 6,500 a. Determine the IRR using interpolation. (Round the final answer to 2 decimal places.)