Determine the internal rate of return

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Question - Home Security Systems is analyzing the purchase of manufacturing equipment that will cost $58,000. The annual cash inflows for the next three years will be:

Year

Cash Flow

1

$29,000

2

27,000

3

22,000

Required -

a. Determine the internal rate of return.

b. With a cost of capital of 15 percent, should the equipment be purchased?

Reference no: EM132847583

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