Problem 12-13 Internal rate of return [L012-4] Home Security Systems is analyzing the purchase of manufacturing equipment that will cost $68,000. The annual cash inflows for the next three years will be: Year Cash Flow $34,000 32,000 27,000 Use Appendix B and Appendix D for an approximate financial calculator metho. a. Determine the internal rate of return. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Internal rate of return b. With a cost of capital of 16 percent, should the equipment be purchased? O Yes No