A firm, whose cost of capital is 9 percent, may acquire equipment for $110,783 and rent it to someone for a period of five years. a. If the firm charges $32,270 annually to rent the equipment, what are the net present value and the internal rate of return on the investment? Use a minus sign to enter negative values, if any. Round your answers for the net present value to the nearest dollar and for the internal rate of return to the nearest whole number. b. Should the firm acquire the equipment? c. If the equipment has no estimated residual value, what must be the minimum annual rental charge for the firm to earn the required 9 percent on the investment? Round your answer to the nearest dollar.

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing t…