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Home Security Systems is analyzing the purchase of manufacturing equipment that will cost $66,000. The annual cash inflows for the next three years will be:

Home Security Systems is analyzing the purchase of manufacturing equipment that will cost $66,000. The annual cash inflows for the next three years will be: Year Cash Flow 1 $ 33,000 2 31,000 3 26,000 Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the financial calculator method. a. Determine the internal rate of return. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Internal rate of return % b. With a cost of capital of 15 percent, should the equipment be purchased? Yes No

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