A small industrial printer costs $50000 and is expected to earn annual net cash inflows of $22000,

Question:

A small industrial printer costs $50000 and is expected to earn annual net cash inflows of $22000, $20000, $18 000 and $16 000, before it wears out sufficiently to be unreliable and must be sold for an estimated $5000.
a. If funds earn 10 per cent, what is its NPV?
b. If funds earn 15 per cent, what is its NPV?
c. What is the IRR for the machine?
d. Advise management on the purchase of the machine.