22. a) Boston Company is contemplating the purchase of a new machine on which the following information has been gathered: (10) Cost of the machine $38,900 Annual cash Inows $10,000 expected Salvage value $5,000 Life of the machine 6 years The company's discount rate is 16%, and the machine will be depreciated using the straight-line method. Given these data, calculate net present value of the investment. b) The Higgins Company has just purchased a piece of equipment at a cost of $120,000. This equipment will reduce operating costs by $40,000 each year for the next eight years. This equipment replaces old equipment that was sold for $8,000 cash. Calculate the payback period