1) Patti's project has a first cost P, annual savings A, and a salvage value of $1,000 at the end of the 10-year service life. She has calculated the present worth as $20,000, the annual worth as $4,000, and the pay back period as three years. What is the IRR for this project?
2) A chemical recovery system costs $30,000 and saves $5,280 each year of its life. The salvage value is estimated at $7,500. The after-tax MARR is 9%, the CCA rate is 20% and taxes are at 45%. What is the net after tax annual benefit or cost of purchasing the chemical recovery system?