_QUESTION S. I'll mark's !" Carcross Company is considering the purchase of a machine that promises to reduce operating costs by the same amount for every year of its six - year useful life . The machine will cost $.83 , 150 and has no salvage value . The machine has a 20% internal rate of return . IIgnore income taxes in this problem . ! Required : 1 ) What is the annual cost savings promised by the machine ?" Question 4 : 145 mark's ! Consider each of the following situations independently . 1 1 Annual cash inflows from two competing investment opportunities are given below . Each investment opportunity will require the same initial investment . Compute the present value of the cash inflows for each investment using a 20% discount rate . Year \\Investment* ` Investment Y 0.05 5 2,000 1 ,000 1 , 500 1, 500 1 , 000 2, 000 5, 00 Total\\ $5, 000 $5, 000 2) At the End of three years , when you graduate from college , your father has promised to give you a used car that will cost $22, 000 . What lump sum must he invest now to have the $ 2 2 , 000 at the End of three years if he can invest money at 9 . 5% ?) 6 . 8% ? BUSI 2083 Introduction to Managerial Accounting*