Enchanted is a Halloween decorations manufacturer planning to purchase a new packing machine for $119,000 with a useful life of 10 years and a terminal value of $9,250. Savings due to the machine are expected to be $22,500 per year, however, parts of the machine must be replaced every year, so a working capital investment of $6,000 must be maintained. This amount will be recoverable upon disposal. Required rate of return is 10%. All cash flows occur at year-end except for the initial investment. Ignore income taxes in your analysis. (Click the icon to view the future value of $1 factors.) (Click the icon to view the future value of annuity of $1 factors.) (Click the icon to view the present value of $1 factors.'. (Click the icon to view the present value of annuity of $1 factors.) Requirement 1. Calculate NPV. (Use factors to three decimal places, X.XXX, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest whole dollar.) The net present value is Required 1. Calculate NPV. 2. Describe two methods to determine the IRR. 3. Without using the methods in requirement 2, state whether the IRR will be lower or higher than 9%. How do you know? 4. Calculate AARR based on net initial investment. Future value of $1 factors Compound Amount of $1 (The Future Value of $1 ) S=P(1+ra. In this table P=$1. Future value annuity of $1 factors Compound Amount of Annuity of $1 in Arrears* (Future Value of Annuity) Sn=n(1+r)n1 Present value of $1 factors Present Value of $1 P=aS. In this table S=$1. Present value annuity of $1 factors Present Value of Annuity $1 in Arrears* pn=11[11]