X Company is planning to drop a department that has shown a loss over the past few years. Its accountant estimates that the savings from dropping the department will be $13,200 a year for the next 7 years. The accountant also believes that the company will be able to immediately sell some equipment that was used in the department for $16,000. Assuming a discount rate of 4%, what is the net present value of dropping the department?

X Company must decide whether to continue using its current equipment or replace it with new, more efficient equipment. The following information is available for the current and new equipment:

Current equipment
Current sales value			$12,000
Final sales value			3,370
Operating costs			61,740
New equipment
Purchase cost			$162,000
Final sales value			3,370
Operating cost savings			28,615

The current and new equipment will last for 6 years. If X Company replaces the current equipment, what is the approximate internal rate of return (enter your rate as a decimal; so 1% would be .01) ____________