1. Wagner Tools is analyzing the purchase of a new machine costing $155,000. The company expects to realize net savings of $30,000 per year for the next 7 years. What is Wagner's internal rate of return (IRR) on this investment? Select one: A. 6.72% B. 7.32% C. 8.22% D. 9.52%
2. Drummond Corporation is considering making an investment in Project A, which will require an initial cash outlay of $20,000. Project A is expected to generate cash inflows of $6,000 for year 1, $8,000 for year 2, $10,000 for year 3, and $7,000 for year 4. The firm's hurdle rate is 12%.What is the net present value for Project A? Select one: A. $3,301 B. $4,529 C. $5,786 D. None of the above