A mine is considering the installation of automated equipment in its processing plant to reduce labour costs from: $300,000 to $220,000 in year 1, from $330,000 to $240,000 in year 2, from

$360,000 to $260,000 in year 3, and from $400,000 to $290,000 in year 4. The equipment will cost $200,000 now with an expected salvage value of $50,000 in four years. The minimum rate of return is 20%. Use IRR and NPV analysis to determine if the equipment should be installed