PLEASE DON'T USE EXCEL WHEN SOLVING IRR.

ABC Inc. has been offered an automated special$-$purpose welder $($robot$)$ for $$60,000$ for one of its divisions. The machine is expected to have a useful life of eight years with a terminal disposal price of $$14,000.$ Savings in cash operating costs are expected to be $$15,000$ per year. However, additional working capital is needed to keep the welder running efficiently and without stoppages. Working capital includes mainly argon gas, wires, and tips. These items must continually be replaced, so an investment of $$5,000$ must be maintained in them at all times, but this investment is fully recoverable $($will be "cashed in$")$ at the end of the useful life. ABC's required rate of return is $14\%.$ The current accrual accounting rate of return for the Division in question is $16\%.$

Required:

A$.$ Compute the net present value.

B$.$ Compute the internal rate of return.

Compute the accrual accounting rate of return based on the net initial investment. Assume straight line amortization.