Exercise $10-9$A $($Algo$)$ Determining the internal rate of return LO $10-3$

Rooney Manufacturing Company has an opportunity to purchase some technologically advanced equipment that will reduce the company's cash outflow for operating expenses by $$1,283,000$ per year. The cost of the equipment is $$6,995,856\mathrm{.}44.$ Rooney expects it to have a $11-$year useful life and a zero salvage value. The company has established an investment opportunity hurdle rate of $13$ percent and uses the straight$-$line method for depreciation. $($PV of $$1$ and PVA of $$1)$

Note: Use appropriate factor$($s$)$ from the tables provided.

Required

a$.$ Calculate the internal rate of return of the investment opportunity.

Note: Do not round intermediate calculations.

b$.$ Indicate whether the investment opportunity should be accepted.

a$.$ Internal rate of return

$\backslash$table$[[$a$.$ Internal rate of return$],[$b$.$ Should the investment opportunity be accepted?$]]$