11. (8 points) HVBB Ltd. is considering the option of buying a new machine, which costs $100,000. It will last for six years, after which it can be salvaged at $3,000. It would also require an additional investment of $15,000 in working capital items like spares. The cost accountant has prepared the project cashflow with the initial cash outflow of $115,000 ($100,000+ $15,000), the operating cash outflow from the year 1 to 6, and the terminal cash flow of salvage value ($3,000) and release of working capital ($15,000) added into the 6th year's operating cash flow ($12,000). Year 0 1 2 3 4 5 Cash Flow (115,000) 50,000 60,000 30,000 20,000 20,000 30,000 6 Required: Evaluate the proposal of buying the new machine using (a) the pay-back period method, (b) the net present value method, (c) profitability index, and (d) the internal rate of returns. Consider using a 10 percent cost of capital