Determine the internal rate of return

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Reference no: EM132036967

Suzanne’s Restaurant Supplies is considering the purchase of manufacturing equipment that will cost $20,000. The annual cash inflows for the next three years will be:

Year Cash Flow

1 $10,000

2 $9,000

3 $6,500

A. Determine the internal rate of return

B. With a cost capital of 12%, should the machine be purchased?

Reference no: EM132036967

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