OptILux Is considering Investing In an automated manufacturing system. The system requires an InItial Investment of $$5\mathrm{.}0$

million, has a $20-$year life, and will have zero salvage value. If the system Is implemented, the company will save $$620,000$ per

year In direct labor costs. The company requires a $10\%$ return from its investments. $($PV of $$1,$ FV of $$1,$ PVA of $$1,$ and FVA of $$1)$

$($Use approprlate factor$($s$)$ from the tables provided.$)$

a$.$ Compute the proposed Investment's net present value.

b$.$ Using the answer from part a$,$ Is the Investment's Internal rate of return higher or lower than $10\%?$ Hint: It is not necessary to

compute IRR to answer this question.

Complete this question by entering your answers in the tabs below.

Compute the proposed investment's net present value.

Net present value