21. A new asset is expected to provide service over the next four years. It will cost $500,000, generates annual cash inflows of $150,000, and requires cash operating expenses of $30,000 each year. In addition, a $10,000 overhaul will be needed in year 3. If the company requires a 10% rate of return, the net present value of this machine would be:

$(127,110), and the machine meets the company's rate-of-return requirement.

$(127,110), and the machine does not meet the company's rate-of-return requirement.

$(129,600), and the machine does not meet the company's rate-of-return requirement.

$(151,700), and the machine meets the company's rate-of-return requirement. None of the other answers are correct.

22.A new machine that costs $172,100 is expected to save annual cash operating costs of $40,000 over each of the next nine years. The machine's internal rate of return is:

approximately 14%.

approximately 16%.

approximately 18%.

approximately 20%.

None of the other answers are correct.