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pleasee complete parts A,B,&C Crane Inc, wants to purchase a...

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Accounting

pleasee complete parts A,B,&C
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Crane Inc, wants to purchase a new machine for $40,700, excluding $1,500 of installation costs. The old machine was purchased $ years ago and had an expected economic life of 10 years with no salvage value. The old machine has a book value of $2,300, and Crane Inc. expects to sell it for that amount. The new machine will decrease operating costs by $9,700 each year of its economic life. The straight-line depreciation method will be used for the new machine for a 6 -year period with no salvage value. Click here to view PV table. (a) Determine the cash payback period. (Round cash paybock period to 2 decimal places, es. 10.53) Cash payback period years (b) Determine the approximate internal rate of return. (Round answer to 0 decimol places, es. 13%. For calculation purposes, use 5 decimal places as displayed in the foctor table provided.) (b) Determine the approximate internal rate of return. (Round answer to 0 decimal ploces, eg. 13%. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Internal rate of return I (c) Assuming the company has a required rate of return of 10%, determine whether the new machine should be purchased. The investment be accepted

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