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Home Security Systems is analyzing the purchase of manufacturing equipment that will cost $42,000. The annual cash Inflows for the next three years will be:
Home Security Systems is analyzing the purchase of manufacturing equipment that will cost $42,000. The annual cash Inflows for the next three years will be: Use Appendix B and for an approximate answer but calculate your final answer using the financlal calculator method. a. Determine the internal rate of return. Note: Do not round Intermedlate calculations. Enter your answer as a percent rounded to 2 declmal places. b. With a cost of capltal of 10 percent, should the equipment be purchased? Yes No Present value of $1,PVIF PV=FV[1/(1+i)n] Present value of an annuity of $1,PVIFA PVA=A[1(1/(1+i)n)]/i
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