Quary Company is considering an investment in machinery with the following information. The companys required rate of return is 12%. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

Initial investment	$ 350,000		Materials, labor, and overhead (except depreciation)	$ 63,000
Useful life	8	years	DepreciationMachinery	38,000
Salvage value	$ 21,800		Selling, general, and administrative expenses	23,000
Expected sales per year	12,000	units	Selling price per unit	$ 13

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 12%?

Complete this question by entering your answers in the tabs below. Required A Required B Compute the investment's net present value. (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.) Chart Values are Based on: n= 1 = 12 % Year Cash Inflow Years 1-8 32,000 x Year 8 salvage 21.800 x = Present Value PV Factor 0.4523 0.4039 $ 0 Present value of cash inflows Initial investment Net present value