Wheeling-Pittsburgh Steel Company installed a new machine at a cost of $285000. The expected salvage value of this machine was $50000 after 10 years. During this 10 years, the annual revenue was $52000.

1. Did the company recover the investment at 12% per year return?
2. If the annual operating cost was $10000 the first year and increased constantly by $1000 per year, estimate if the AW was negative or positive at interest of 12% per year? Assume the salvage value of the machine ($ 50000) was realized.