Determine the irr using interpolation with a cost of


Elgin Restaurant Supplies is analyzing the purchase of manufacturing equipment that will cost $41,000. The annual cash inflows are as follows Year Cash flow 1 $20,000 2 19,000 3 16,500 a. Determine the IRR using interpolation.. (Round the final answer to 2 decimal places.) Internal rate of return % b. With a cost of capital of 16 percent, should the machine be purchased? Yes No c. With information from part b, compute the profitability index. (Round the final answer to 3 decimal places.) Profitability index =

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Financial Management: Determine the irr using interpolation with a cost of
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