Crestco Car Mechanics, Inc. has decided to sell its computer diagnostic equipment and instead to hire more mechanics to work on cars. The sale of the equipment will bring in the amount of $800 immediately. The hiring of the new mechanics will require the company to make an additional investment in the business of $181 (an outflow) at the end of each year, beginning in one year, that continues for a total of 6 consecutive years. Calculate the internal rate of return (IRR) of this unusual project. Answer #1: % Place your answer in percentage form and no percentage sign. While we usually seek additional precision, the calculation of the IRR without the use of a financial calculator can be overly burdensome. Therefore, answers in percentage form with one degree of accuracy is acceptable here. That is, if your answer is five point six six percent, place your answer as 5.7 (and not as .057.) Second Part Based upon the IRR decision rule, and a required rate of return of 8.5%, should Crestco accept or reject the project? Answer #2: Place your aswer as either the word Accept or the word Reject. A firm has invested $500 in a new machine that is expected to last for the next 5 years. The machine will be depreciated on a straight line basis down to zero by the end of its 5 year life. The firm projects that the machine will generate consecutive annual cash inflows of $650 beginning in one year and will generate consecutive annual cash outflows at 290 also beginning in one year.. Assuming the tax rate of 38%, determine the firm's cash flow next year. $ Place your answer to dollars and cents. Do not include a dollar sign or a comma in your answer. This is a two-part question. Scotch can expand a successful manufacturing line for an immediate investment of $95 million. The company anticipates that the project will generate a cash flow of $156 million in 8 years (and only in that one year). The company considers the required rate of return of the project to be 11.59% PART 1. Calculate the project's internal rate of return: % Notes on Formatting: Place your answer in PERCENTAGE form with two decimal places of accuracy. For example, if your answer is thirteen point seventy five percent, then place your answer as 13.75 and NOT as .1375. NOW GO ON TO THE SECOND PART! PART 2. Given your estimate of the IRR, should Scotch accept or reject the project? Type the word "accept" if you believe they should go ahead with the project or the word "reject" if you believe they should not go ahead with the project.