Quary Company is considering an investment in machinery with the following information. The company$$s required rate of return is $14\%.($PV of $$1,$ FV of $$1,$ PVA of $$1,$ and FVA of $$1)$

Note: Use appropriate factor$($s$)$ from the tables provided.

Initial investment $ $204,000$ Materials, labor, and overhead $($except depreciation$)$ $ $46,000$

Useful life $8$ years Depreciation$$Machinery $20,400$

Salvage value $ $20,400$ Selling, general, and administrative expenses $6,000$

Expected sales per year $10,000$ units Selling price per unit $ $12$

Compute the investment$$s net present value.

Using the answer from part a$,$ is the investment$$s internal rate of return higher or lower than $14\%?$ Hint: It is not necessary to compute the IRR to answer this question.