A project requires an initial investment of $60,000. It will generate an annual profit of $12,000 for eight years and have a terminal value of $10.000. Calculate the project's IRR. Should it be accepted if the cost of capital is 15%? Multiple Choice 13.6% No 11.9% No 15% Yes 32% No 16.4% Yes Wooltech Industries is considering the purchase of two knitting machines. The Super X Knitter costs $25,000 and is expected to generate annual profits of $6,000 for five years. The Knitting Bee will cost $65,000 and will also generate annual profits of $10,000 but has an expected life of ten years. The salvage value of both machines at the end of their expected lifetimes is estimated at $6,000 each. If both machines meet Wooltech's needs, which machine should they purchase if their required annual compounded rate of return is 10%? What is the economic advantage, in current dollars, of the preferred machine? Multiple Choice Knitting Bee has $319.81 advantage Super X has $2153.98 advantage Super Xhos $2,582.93 advantage Super X has $22918 advantage Writing Boo has $32816 advantage