Exercise 24-19 (Algo) Net present value; internal rate of return; equal cash flows LO P3, P4 Quary Company is considering an investment in machinery with the following information. The company's required rate of return is 14%. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Initial investment Useful life $ 264,000 Materials, labor, and overhead (except depreciation) 8 years Depreciation-Machinery $ 57,000 26,400 Salvage value Expected sales per year $ 26,400 10,000 units Selling, general, and administrative expenses Selling price per unit 17,000 $ 14 a. Compute the investment's net present value. b. Using the answer from part a, is the investment's internal rate of return higher or lower than 14%? Complete this question by entering your answers in the tabs below. Required A Required B Compute the investment's net present value. (Negative net present values should be indicated with a minus sign. Round your present value factor to 4 decimals. Round your answers to the nearest whole dollar.) Net Cash Flows Present Value Present Value of Net Cash Flows Years 1-8 $ Year 8 salvage 66,000 26,400 4.9760 x = Totals Initial investment Net present value $ 0 264,000