Assume a piece of machinery costs $420,000 and would last for 10 years. At the end of 10 years, the salvage value would be $98,500. Annual cost savings for the machinery would be $91,000. Assume a minimum pretax return of 14% is required for all machinery purchases. Compute the NPV and IRR for the machinery. (Ignore income taxes.)

Provide the amounts you input in Excel and your calculated net present value. (If a variable is not used in the calculation, input a zero (0). Omit the "$" and "%" signs in your response.) Round your answer to the nearest dollar and use a minus sign for negative numbers.

Excel input:

Rate %

Nper

PMT $

PV $

FV $

Net Present Value (NPV) $

Required: Provide the amounts you input in Excel and your calculated internal rate of return. (If a variable is not used in the calculation, input a zero (0). Omit the "$" and "%" signs in your response.) Round your answer to one decimal place and use a minus sign for negative numbers. Excel input:

Rate %

Nper

PMT $

PV $

FV $

Internal Rate of Return (IRR) %