QUESTION $2$

$($a$)$ You work for a large printing company and have been asked to investigate the purchase of a new

printing machine. The machine costs $85000$ at the beginning of $2023$ and it will be replaced at the

end of $2027.$ During these $5$ years the net cashflows are detailed below.

$($a$)$ Using a discount rate of $10\%,$ find the NPV of this project. $(20$ marks$)$

$($b$)$ Using a discount rate of $20\%$ find the IRR $(20$ marks$)$