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Quary Company is considering an investment in machinery with the following information. The companys required...

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Accounting

Quary Company is considering an investment in machinery with the following information. The companys required rate of return is 14%.(PV of $1, FV of $1, PVA of $1, and FVA of $1)(Use appropriate factor(s) from the tables provided.)
Initial investment $ 304,000 Materials, labor, and overhead (except depreciation) $ 60,000
Useful life 9 years DepreciationMachinery 30,400
Salvage value $ 30,400 Selling, general, and administrative expenses 20,000
Expected sales per year 12,000 units Selling price per unit $ 13
a. Compute the investments net present value.
b. Using the answer from part a, is the investments internal rate of return higher or lower than 14%?

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