Quary Company is considering an investment in machinery with the following information. The companys required rate of return is 14%. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

Initial investment	$ 288,000		Materials, labor, and overhead (except depreciation)	$ 56,000
Useful life	7	years	DepreciationMachinery	28,800
Salvage value	$ 28,800		Selling, general, and administrative expenses	16,000
Expected sales per year	12,000	units	Selling price per unit	$ 12

a. Compute the investments net present value. b. Using the answer from part a, is the investments internal rate of return higher or lower than 14%?