Quinn Industries is considering the purchase of a machine that would cost $420,000 and would last for 10 years. At the end of 10 years, the machine would have a salvage value of $98,500. The machine would reduce labor and other costs by $73,000 per year. The company requires a minimum pretax return of 12% on all investment projects. (Ignore income taxes.)

Required:

Provide your Excel input and the final net present value amount you calculated. (If a variable is not used in the calculation, input a zero (0). Omit the "$" and "%" signs in your response.) Round your answer to the nearest dollar and use a minus sign for negative numbers.

Excel input:

Rate

%

Nper

PMT

$

PV

$

FV

$

Net Present Value (NPV)

$

Required:

Input the required variables and the computed internal rate of return. (If a variable is not used in the calculation, input a zero (0). Omit the "$" and "%" signs in your response.) Round your answer to one decimal place and use a minus sign for negative numbers.

Excel input:

Rate

%

Nper

PMT

$

PV

$

FV

$

Internal Rate of Return (IRR)

%