a.

b.

Thunder Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $166,169 and have an estimated useful life of 9 years. It can be sold for $68,300 at the end of that time. (Amusement parks need to rotate exhibits to keep people interested.) It is expected to increase net annual cash flows by $23,100. The company's borrowing rate is 8%. Its cost of capital is 10%. Click here to view the factor table. Calculate the net present value of this project to the company and determine whether the project is acceptable. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round present value answer to 0 decimal places, e.g. 125.) Net present value $ The project Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $175,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $33,612. Click here to view the factor table. What is its approximate internal rate of return? (Round answer to 0 decimal place, e.g. 13%.) Internal rate of return %