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Elgin Restaurant Supplies is analyzing the purchase of manufacturing equipment that will cost $21.000 The annual cash inflows are as follows. Use Appendix D Year
Elgin Restaurant Supplies is analyzing the purchase of manufacturing equipment that will cost $21.000 The annual cash inflows are as follows. Use Appendix D Year 1 2 3 Cash Flow $10,080 9,500 7,500 a. Determine the IRR using interpolation (Round the intermediate calculations to the nearest whole dollar. Round the final answer to 2 decimal places) IRR 96 b. With a cost of capital of 13 percent, should the machine be purchased? Yes O No c. With information from part b, compute the PL (Round the final answer to 3 decimal places.) PI
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