Home Security Systems is analyzing the purchase of manufacturing equipment that will cost $94,000. The annual cash inflows for the next three years will be:

YearCash Flow1$47,000245,000337,000

UseAppendix BandAppendix Dfor 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.)

b.With a cost of capital of 12 percent, should the equipment be purchased?

YesNo