Question 5 Success Ltd is evaluating whether it should invest today in a equipment that cost $250,000. With the new machine, the firm projects it will be able to receive $50,000 at the end of every year for the next 6 years. At the end of the 6 years, the company will scrap the machine and do not expect to receive any salvage value for it. The cost of capital for the firm is 15%. Calculate the internal rate of return (IRR) of this investment. Should the firm purchase the machine? Give your reason(s). (4 marks) Question 6 Your company is looking into an investment. To fund the investment, the firm requires $150,000. The firm's weighted average cost of capital (WACC) is 8%, and the investment is expected to generate net operating profit after tax (NOPAT) of $60,000. Given the firm's tax rate is 30%, calculate the economic value added (EVA) of the investment. Should the firm accept or reject the investment? Give your reason(s)