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Home Security Systems is analyzing the purchase of manufacturing equipment that will cost $52,000. The annual cash inflows for the next three years will be:
Home Security Systems is analyzing the purchase of manufacturing equipment that will cost $52,000. The annual cash inflows for the next three years will be: Year Cash Fl ow 24,000 19,000 metho Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the financial calculator method. a. Determine the intemal rate of returm (Do not round intermediate calculations. Enter your answer as a round intemediate caulationster Internal rate of retum b. With a cost of capital of 14 percent, should the equipment be purchased? O Yes O No
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