EX 15: The management of Kunkel Ltd is considering the purchase of a $40,000 machine that would reduce operating costs by $7,000 per year. At the end of the machine's eight - year useful life, it will have zero scrap value. The company required rate of return is 12% on all investment projects. Required: 1. Determine the NPV of the investment? 2. Compute the IRR and consult to the manager to accept project or not? Give the reason