1. Hamell Company has gathered the following data on a proposed investment project:

Discount rate 9%

Life of the project 9 years

Initial investment $410,000

Annual cash flows $81,000

Salvage value 0

The net present value on the proposed investment is closest to (Round your intermediate calculations to 3-decimals and your present value calculations to the nearest dollar amount.):

A. $75,595.

B. $485,595.

C. $81,000.

D. $75,595.

2. Acme Company is considering investing in a new machine that costs $107,350 and that has a useful life of 10 years with no salvage value. The machine will generate $19,000 annually in net cash inflows. The internal rate of return on the investment is: (Round your intermediate calculations to 3-decimals and your internal rate of return calculations to the nearest whole percent.)

A. 6%.

B. 12%.

C. 10%.

D. 8%.