Kings Department Store is considering the purchase of a new machine at a cost of $12,059. The machine will provide $3,100 per year in cash flow for five years. Kings cost of capital is 10 percent.

a. What is the IRR? (Use a Financial calculator to arrive at the answers. Round the final answer to the nearest whole percent.)

IRR %

b. Using the IRR method, evaluate this project and indicate whether it should be undertaken.

multiple choice

Yes

No