4 decimals in solution, 2 decimals in final answer. Thanks in advanced.

1) You are faced with making a decision on a large capital investment proposal. The capital investment amount is $640,000. Estimated annual revenue at the end of each year in the eight year study period is $180,000. The estimated annual year-end expenses are $42,000 starting in year one. These expenses begin decreasing by $4,000 per year at the end of year four and continue decreasing through the end of year eight. Assuming a $20,000 market value at the end of year eight and a MARR = { =12% per year, answer the following questions. a). Using FW, AW and PW, determine whether this proposal is acceptable. b). What is the ERR of this proposal? Is it acceptable c). What is the IRR of this proposal? Is it acceptable d). What is the simple and discounted payback period for this proposal? 2) An existing machine in the factory has an annual maintenance cost of 40,000. A new and more efficient machine will require an investment of 90,000 and it is estimated to have a salvage value of 30,000 at the end of 8 years. Its annual expenses for maintenance is 22,000. If the company's MARR is 12%, will it be worthwhile to purchase the new machine using (a) Present Worth Method? (b) IRR method