A special machine can save $11,200 per year in cash operating expenses for the next 10 years. The cost is $44,000. No salvage value is expected. Assume the tax rate averages 2/7 of taxable income, straight-line depreciation is used, and the cost of capital = 10% . The CFAT is (round to the nearest dollar):

a.	$11,200	c.	$8,480
b.	$9,258	d.	$6,800

Refer to the preceding question. The internal rate of return, using linear interpolation and rounding to two decimal places, is:

a.	25.45%	c.	12.34%
b.	21.04%	d.	14.14%