23. Paulsen is considering the acquisition of a $217,750 machine that is expected to produce annual savings in cash operating costs of $50,000 over the next six years. If Paulsen uses the internal rate of return (IRR) to evaluate new investments and the company has a hurdle rate of 12%, which of the following statements is correct?

The machine's IRR is less than 4%, and the machine should not be acquired.

The machine's IRR is approximately 10%, and the machine should not be acquired.

The machine's IRR is approximately 10%, and the machine should be acquired.

The machine's IRR is approximately 12%, and the machine should be acquired.

All of the other statements are false.

24.A machine costs $28,000; it is expected to generate annual cash revenues of $12,000 and annual cash expenses of $4,000 for 4 years. The required rate of return is 14%. The net present value of this machine would be closest to (Round PV factors to 3 decimal places.):

$(6,968).

$34,968.

$0.

$(4,688).

$23,312.