OptiLux is considering investing in an automated manufacturing system. The system requires an initial investment of $$4$ million, has a

$20-$year life, and will have zero salvage value. If the system is implemented, the company will save $$500,000$ per year in direct labor

costs. The company requires a $10\%$ return from its investments.

Compute the proposed investment's net present value.

Using your answer from part $1,$ is the investment's internal rate of return higher or lower than $10\%?$

Answer is complete but not entirelty correct.

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Required $2$

Compute the proposed investment's net present value.