1.Galvanized Products is considering purchasing a new computer system for their enterprise data management system. The vendor has quoted a purchase price of $80,000. Galvanized Products is planning to borrow one-fourth of the purchase price from a bank at 19% compounded annually. The loan is to be repaid using equal annual payments over a 3-year period. The computer system is expected to last 5 years and has a salvage value of $7,000 at that time. Over the 5-year period, Galvanized Products expects to pay a technician $29,000 per year to maintain the system but will save $58,000 per year through increased efficiencies. Galvanized Products uses a MARR of 17%/year to evaluate investments. What is the external rate of return (ERR) of this investment?

2.

Consider the following cash flow profile and assume MARR is 10%/year.

EOY	NCF
0	-$90
1	$19
2	$19
3	$19
4	$19
5	$19
6	$19

What is the ERR?

PLEASEEE ANSWER BOTH THE QUESTIONS.

THANK YOU