Elgin Restaurant Supplies is analyzing the purchase of manufacturing machine that will cost $$32,000.$ The annual cash inflows are as follows. Use Appendix D$.$

Year Cash Flow

$1$ $$16,000$

$214,000$

$39,000$

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

$11\mathrm{.}71$

$\%$

b$.$ With a cost of capital of $10$ percent, should the machine be purchased?

multiple choice

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