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Elgin Restaurant Supplies is analyzing the purchase of manufacturing equipment that will cost $28,000. The annual cash inflows are as follows. Use Appendix D. Year

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Elgin Restaurant Supplies is analyzing the purchase of manufacturing equipment that will cost $28,000. The annual cash inflows are as follows. Use Appendix D. Year 1 2 3 Cash Flow $15,000 13,500 10,500 a. Determine the IRR using interpolation. (Round the intermediate calculations to the nearest whole dollar. Round the final answer to 2 decimal places.) IRR % b. With a cost of capital of 18 percent, should the machine be purchased? Yes NI- IRR % b. With a cost of capital of 18 percent, should the machine be purchased? O Yes O No c. With information from part b, compute the PI. (Round the final answer to 3 decimal places.) PIL

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