Sharps, Inc. is considering the purchase of equipment that would cost $57,600, have a useful life of 4 years, no salvage value and would result in labor savings of $21,000 per year. The internal rate of return on the investment in the equipment is closest to (factors for selected rates are presented below): 18% 20% 1 2 3 17% 0.855 1,585 2.210 2.743 3.199 0.847 1.566 2.174 2.690 3.127 19% 0.840 1.547 2.140 2.639 3.058 0.833 1.528 2.106 2.589 2.991 4 5 a. 19% b.18% c. 20% d. 17% Pool Corp is considering purchasing an existing machine with a new machine costing $400,000. The new machine's life is 4 years, its salvage value is $40,000 and it will provide annual cash savings of $125,000. The existing machine could be sold immediately for $20,000. If the company's discount rate is 12%, the net present value of the project is closest to (factors from Exhibit 128-1 and Exhibit 128-2 for an interest rate of 12% are provided below). Period Present value of S1 Present value of an annuity 1 2 3 4 5 a $25,190 0.893 0.797 0.712 0.636 0.567 0.893 1.690 2.402 3.037 3.605 b. $17.910 c. $32.470 d. ($14,810)