You are considering an upgrade at a chip manufacturing plant. A new VLSI testing station costs $100,000, installed. It will save $50,000 per year in labor costs. Use five-year tax life and a tax rate of 40%. Find the rate of return (IRR). (Use two sig. figs.)

If the unit requires reprogramming calibration during the fourth year at a cost of $30,000, what is the new IRR with this condition?