Use this information for the next 3 questions:

Lugar Industries is considering an investment in a new machine with the following information:

Machinecost250,000

Salvagevalue50,000

Life5 years

Working Capital$0 (no working capital needed)

Net operating expense savings:

End of Year1$ 50,000

End of Year2$ 90,000

End of Year3$110,000

End of Year4$120,000

End of Year5$120,000

WACC10%

Taxrate40%

Assumed salvage

value of the machine

at end of 5 yearsis$50,000 (You will sell this machine at the end of the project for $50,000)

1. Based on the information, the NPV of this project would be:(Round you answer to the nearest two decimal places. For example, 45,000.78 would be entered as 45001.
2. Based on the above information, calculate the IRR.(Round you answer to the nearest two decimal places. Do not use %. For example, 34.4550% would be entered as 34.46.