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Home Security Systems is analyzing the purchase of manufacturing equipment that will cost $38,000. The annual cash inflows for the next three years will be:
Home Security Systems is analyzing the purchase of manufacturing equipment that will cost $38,000. The annual cash inflows for the next three years will be: 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. b. With a cost of capital of 14 percent, should the equipment be purchased? No Yes
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