2. (Part A repeated- You are considering an upgrade at a chip manufacturing plant. A new VLSI testing station costs $100,000, installed. It will save $50,000 per year in labor costs. Use five-year tax life and a tax rate of 40%. Find the rate of return (IRR). (Use two sig. figs.)) Part B- If the unit requires reprogramming calibration during the fourth year at a cost of $30,000, what is the new IRR with this condition? The answer to Part B is:

	1.	18%
	2.	None of these answers
	3.	22%
	4.	20%
	5.	27%