Home Security Systems is analyzing the purchase of manufacturing equipment that will cost $92,000. The annual cash inflows for the next three years will be:

Year	Cash flow
1		$	41,000
2			39,000
3			34,000

(a)	Determine the internal rate of return using interpolation. Use Appendix B and Appendix D. (Round "PV Factor" and intermediate to 3 decimal places. Round final answer to 2 decimal places. Omit the "%" sign in your response.)

Internal rate of return

%

(b)

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

	Yes
	No