11-1A Computation of payback period, accounting rate of return, and net present value L.O. P1, P2, P3 Elite Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $300,000 cost with an expected four-year life and a $20,000 salvage value. All sales are for cash, and all costs are out of pocket except for depreciation on the new machine. Additional information includes the following. (Use Table B.1) Expected annual sales of new product $ 1,150,000 Expected annual costs of new product Direct materials 300,000 Direct labor 420,000 Overhead excluding straight-line depreciation on new machine 210,000 Selling and administrative expenses 100,000 Income taxes 30 % Compute the net present value for this machine using a discount rate of 7% and assuming that cash flows occur at each year-end. (Hint: Salvage value is a cash inflow at the end of the asset