The manager of the creative design department of a toy manufacturer is interested in purchasing a three-dimensional printer to use in designing prototypes for new toys. The cost is $80,000, but it will reduce labour and other costs by $25,000 per year. At the end of the printer's five-year useful life, it will have no scrap value. The company's required rate of return is 8%.

Required:
Ignore income taxes.
1. Determine the net present value of the investment in the printer.
2. What is the printer's internal rate of return?