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

Initial investment $ $300,000$ Materials, labor, and overhead $($except depreciation$)$ $ $55,000$

Useful life $8$ years Depreciation$$Machinery $30,000$

Salvage value $ $30,000$ Selling, general, and administrative expenses $15,000$

Expected sales per year $10,000$ units Selling price per unit $ $13$

a$.$ Compute the investment$$s net present value.

b$.$ Using the answer from part a$,$ is the investment$$s internal rate of return higher or lower than $12\%?$