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$.$

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

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 $3$ decimal places.$)$

Profitability Index