Elgin Restaurant Supplies is analyzing the purchase of manufacturing equipment that will cost $38,000. The annual cash inflows are as follows. Use Appendix D.

Year	Cash Flow
1		$19,000
2		17,000
3		12,000

a. Determine the IRR using interpolation. (Round the intermediate calculations to the nearest whole dollar. Round the final answer to 2 decimal places.)

IRR %

b. With a cost of capital of 11 percent, should the machine be purchased?

• Yes

• No

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

PI