Problem $12-13($Algo$)$ Internal rate of return $[$LO$12-4]$

Home Security Systems is analyzing the purchase of manufacturing equipment that will cost $$52,000.$ The annual cash inflows for the next three years will be:

Year Cash Flow

$1$ $ $26,000$

$224,000$

$319,000$

Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the financial calculator method.

Determine the internal rate of return.

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.

With a cost of capital of $14$ percent, should the equipment be purchased?

multiple choice

Yes

No