A $45,000 investment on a new CNC machine is projected to improve throughput and increasing revenue by $14,000 per year for five years. The production line will have an estimated market value of $4,000 at the end of five years and a %.
a) Using FW, is this a good investment?
b) Calculate the IRR for this investment. How would you explain result of your analysis? (Show your analysis in graphs of present worth versus interest rate)