Home Security Systems is analyzing the purchase of manufacturing equipment that will cost $50,000. The annual cash inflows for the next three years will be:

Year	Cash Flow
1	$25,000
2	23,000
3	18,000

Question 7 (1 point)

a.)

Determine the internal rate of return using interpolation.

Round your answer to 2 decimal places. Omit the "%" sign in your response.

Your Answer:Question 7 options:

Answer

Question 8 (1 point)

b.)

With a cost of capital of 18 percent, should the machine be purchased?

Question 8 options:

A)

Yes

B)

No