Elgin Restaurant Supplies is analyzing the purchase of manufacturing machine that will cost $38,000. The annual cash inflows are as follows. Use Appendix D Year 1 2 3 Cash Flow $19, 18,000 15, see a. Determine the IRR using interpolation (Do not round PV factor. Round other intermediate calculations to the nearest whole dollar. Round the final answer to 2 decimal places.) IRR % b. With a cost of capital of 15 percent, should the machine be purchased? Yes O No c. With information from part b, compute the Profitability Index (Do not round PV factor. Round other intermediate calculations to the nearest whole dollar Round the final answer to decimal naces Year 1 2 3 Cash Flow $19, een 18. eee 15, see a. Determine the IRR using interpolation (Do not round PV factor. Round other intermediate calculations to the nearest whole dollar. Round the final answer to 2 decimal places.) IRR % b. With a cost of capital of 15 percent should the machine be purchased? Yes c. With information from part b, compute the Profitability Index (Do not round PV factor. Round other intermediate calculations to the nearest whole dollar. Round the final answer to 3 decimal places.) Profitability Index APPENDIXD Present Value of an Annuity of S1 PV APVA-A 11+ Code . Perera Period M N 65 7 16 1 0990 016 1260 1960 1560 (160 0935 860 LIS wat NEM SIT ST NOZ 41 SS WS NEW VS 2990 HLOTO 6900 DOO O OO CHO 550 000 TO SITO O 1060 6060 HIT I 191 0+1 SI 21 1661 091 901 491 91 0591 112 11 20+T 655 691 91 2861 917 01 TT itt 9 (SET TET 1967 TOFT HT17 2 OLT 1942 CIT 136 1359 1833 1100 1 1.7 1759 INC 18 2.775 CELE 2673 19T 2573 IES 7 TOGE J 001 LLE 3 630 9156 $9 LE TIRE ONE JIO 3102 3037 294 291 2155 2.798 2.143 2690 2619 259 2.3822166 1997 1949 1.605 9 +55 SE CI OIC 52 SE 4212 00+ 399) ( 3.590 6 5.795 1095 5:411 CHCS 5076 4911 CO VIP A SO OTT AZ 697 165T 6T E TER CET AT 509 99 162 T 1917 886 097 67 ktor ter 61 CM 68% 17 SSC C31 205 W 509 9 226 60+ ON+ + + TILT 595+ 16 LET 367 516Z GEE LESE 156E BOLO 609 661 196+ SUS SEES 1 OY 100 5.76 S 1955 6565 W 5033 1 7651 SCEL 7,020 EL CSP 0179 5.971 16S 5 747 SESS 6 7.105 TOS SIS INS 3.995 10 9.471 1.93 05 7.722 OYCE 7034 6.710 10.161 16 13 2499 GERE 6.305 st 10 STS 1566 935 1983 PES 1943 71536 1912 5.799 5.537 5.325 3132 49464.773 4.601 4451 4300 4.161 401 4633019 2.465 2379 193 61455.019 5.650 5426 52161019.038 459 44+ 4399 +192 3511 1092 3.715 1.414 1.945 649 601 5.93 3.4575453 524 503948364656 456 4722 3656 3.47 2.152 2438 1977 6814 6.490 619 591856605.01.197 198 479346114439 3.725 1190 2.779 2456 1985 TIJ 6.75064246122534 5.50 5342SB4910 45 4533 3.750 1.125 2.79 246 1.990 1387 692 66206902 6002 5.724 5461 3.229 3000 4302 611 14 1 2114 24 1993 76061191 63116462 6.142 5847 575 5.334 5092 476 4675 2.85 3.1 2.625 2.464. 1999 D KETI IMIT 10635 9366 9. ME 1588 SES TO LIP 1+ HOCI 12.106 ME 10563 9.39 9.295 CHI 21 2756 15 13.165 65 611 IT HID 10.300 9.712 2016 6553 1061 16 1471 BEST 12.56 15911 10133 10.106 LIS ISSE CITE 1661677 HZ ELSE OCET 1867 0915 1996 1565 99 1099 769 SELBL 21 2955 14292 1166 12166 11:24 9.763 9123 13 3.022 7519 71206,729 26.047 5.70 375 3272 496847753910 3295 2340 2.492 1.595 9.20.7702250 640 646761215818 5334 527) 503 451239213.304 2.044 2494 1999 11 16.391 14992 12.14 12.659 05911 10:01 10.050 9.372 1956 61 17226 WS PEH HIKI 12005 11.156 OSTI 10 136 1804 0561 665197 HZ HET TOE + OLD IS 1955 S5619 055 1669 996 L 66 590 100SES 195 666 629 SOL 69FL INL HSS 6661 262 0512 M 16X OLE+ 20 11016 ISE 1477 065 12462 1470 10 594 9.10 16 9129 25 22.023 19.523 17.413 15.622 14094 COLTI 15911 10.675 $ 9.023 9.077 1.412 7543 733050736454 6.097 5.765 5.467 3.195 4940 3.9553.329 2536 2.499 2.000 9431 055 726 700) 56 512 530 5335 979 3995 32 2157 2.500 2.000 30 25.100 2296 19 400 LES SOP I CI tou 40 SCOTT 21355 FORTE 1979) 17159 150 ECCE 611 1972 0002 005 517 666 206+ STS STORES 29 L 92 1663 GL 6 0002 00 2500 tot 0007 666 95 1595 0015909 1999 L 529L TOE TH06 $168 50 96166 THE 25.730 TI 11.56 15.762 10 CEI C90 UN Set LAMT-1 Set FV 0 Select LN-nrequired periods Select LLY required interest rate LCOME LA NA
