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Exercise 26-17 (Static) NPV and IRR for strategic investment LO P3, P4 Optilux is considering investing in an automated manufacturing system. The system requires an initial investment of $4 million, has a 20-year life, and will have zero salvage value. If the system is implemented, the company will save $500,000 per year in direct labor costs. The company requires a 10% return from its investments. (PV of $1. FV of $1, PVA of \$1, and FVA of \$1) Note: Use appropriate factor(s) from the tables provided. a. Compute the proposed investment's net present value. b. Using the answer from part , is the investment's internal rate of return higher or lower than 10% ? Hint: It is not necessary to compute IRR to answer this question. Complete this question by entering your answers in the tabs below. Compute the proposed investment's net present value. Exercise 26-17 (Static) NPV and IRR for strategic investment LO P3, P4 Optilux is considering investing in an automated manufacturing system. The system requires an initial investment of $4 million, has a 20-year life, and will have zero salvage value. If the system is implemented, the company will save $500,000 per year in direct labor costs. The company requires a 10% return from its investments. (PV of $1. FV of $1, PVA of \$1, and FVA of \$1) Note: Use appropriate factor(s) from the tables provided. a. Compute the proposed investment's net present value. b. Using the answer from part , is the investment's internal rate of return higher or lower than 10% ? Hint: It is not necessary to compute IRR to answer this question. Complete this question by entering your answers in the tabs below. Compute the proposed investment's net present value

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