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	$ 256,000		Materials, labor, and overhead (except depreciation)	$ 61,000
Useful life	8	years	DepreciationMachinery	25,600
Salvage value	$ 25,600		Selling, general, and administrative expenses	21,000
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 12%? Hint: It is not necessary to compute the IRR to answer this question.