Assume that a company is considering buying a new piece of equipment for $240,000 that would have a useful life of five years and no salvage value. The equipment would generate the following estimated annual revenues and expenses:

Revenues					$	130,000
Less operating expenses:
Commissions	$	15,000
Insurance		5,000
Depreciation		48,000
Maintenance		30,000				98,000
Net operating income					$	32,000

Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. The internal rate of return for this investment is closest to:

Assume that a company is considering buying a new piece of equipment for $250,000 that would have a useful life of five years and a salvage value of $28,000. The equipment would generate the following estimated annual revenues and expenses:

Revenues					$	120,000
Less operating expenses:
Commissions	$	15,000
Insurance		5,000
Depreciation		44,400
Maintenance		30,000				94,400
Net operating income					$	25,600

Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. Assuming a discount rate of 14%, what is the net present value of this investment?