A machine costs $23,000. It is expected to generate annual revenue of $11,000 with annual expenses of $4,000 each year for the next four years. The required rate of return is 14%.

Use these tables to solve the problems.

1. What is the net present value of the machine investment?
   $
   
   
2. What is the actual rate of return on this machine?
   
   • Greater than 14%
   • Between 12% and 14%
   • Between 10% and 12%
   • Between 8% and 10%
   • Between 6% and 8%
   • Between 4% and 6%
   • Less than 4%
   • Not determinable with the information given