Delta Inc. is considering the purchase of a new machine which is expected to increase sales by $10,000 in addition to increasing non-depreciation expenses by $3,000 annually. Due to the sales increase, Delta expects its working capital to increase $1,000 during the life of the project. Delta will depreciate the machine using the straight-line method over the project's five year life to a salvage value of zero. The machine's purchase price is $20,000. The firm has a marginal tax rate of 34 percent, and its required rate of return is 12 percent. 1) The machine's NPV is: A) $1,556.56. B) $2,556.56. C) $1,123.99. D) $2,123.99 2) The machine's IRR is: A) less than 0 B) graater than 12 percent C) less than 12 percent D) equal to 12 percent