A machine with a purchase price of 14000 is estimated to eliminate manual operations costing 4000 per year. The machine will last five years and have no residual value at the end of its life. You are required to calculate:

(a) the discounted cash flow (DCF) internal rate of return;

(b) the level of annual saving necessary to achieve a 12% DCF internal rate of return;

(c) the net present value if the cost of capital is 10%.