ABC Company can borrow money for capital improvements at $6\%.$ It is evaluating whether it should invest in a piece of machinery that will generate cash savings for the company of $$30,000$ per year for $10$ years. At that point, the equipment will be worn out, but it can be scrapped for $$20,000\mathrm{.}00.$ The cost to purchase the machinery is $$200,000\mathrm{.}00,$ which will be a cash transaction.

$($a$)$ Using the textbook tables, calculate the Net Present Value of this Investment $($pre$-$tax basis$).$

$($b$)$ Using EXCEL$$s NPV function, calculate the Net Present Value of this Investment $($pre$-$tax basis$)$

$($c$)$ What is the internal rate of return on this investment $($pre$-$tax basis$)?$

$($a$)$ Based on your analyses, should it invest in the equipment?

$($b$)$ Explain the reason for your answer, using NPV analysis.

$($c$)$ Explain the reason for your answer, using IRR analysis.