Cando Technologies is considering purchasing a networked computer system for \($82,000.\) It will enable the company to generate \($35,000\) more in profit each year and will have a salvage value of \($10,000\) at the end of five years. The amortization on the computer system will be \($14,400\) per year.

a. If the company has a required rate of return of 12%, what is the net present value of the proposed investment?

b. What is the internal rate of return?