Chicago Hospital, a taxpayingentity, estimates that it can save $ 30,000 a year in cash operating costs for the next 10 years if it buys aspecial-purpose eye-testing machine at a cost of $ $135,000. No terminal disposal value is expected. Chicago Hospital's required rate of return is 10%. Assume all cash flows occur atyear-end except for initial Investment amounts. Chicago Hospital ChicagoHospital usesstraight-line depreciation. The income tax rate is 34 % for all transactions that affect income taxes.

a.) Calculate Net present value

b) Calculate the Payback period

c) Calculate IRR

D>) Calculate AARR based on net initial investment

e) calculate AARR based on average investment