Initial investment $ 201,000 Useful life Materials, labor, and overhead (except depreciation) 9 years Depreciation-Machinery $ 47,000 20,100 Salvage value Expected sales per year $ 20,100 Selling, general, and administrative expenses 11,000 units Selling price per unit 7,000 a. Compute the investment's net present value. $ 11 b. Using the answer from part a, is the investment's internal rate of return higher or lower than 12%? Hint: It is not necessary to compute the IRR to answer this question. Complete this question by entering your answers in the tabs below. Required A Required B Compute the investment's net present value. Note: Negative net present values should be indicated with a minus sign. Round your present value factor to 4 decimals. Round your answers to the nearest whole dollar. Years 1-9 Year 9 salvage Totals Initial investment Net present value Present Value of Net Cash Flows x Present Value Net Cash Flows $ 67,000 x 20,100 x 0.3606= 7,248 $ 7,248 201,000