3:40 . Aa V Q E27.6 (LO 1, 4) BSU Inc. wants to purchase a new machine for $29,300, excluding $1,500 of installation costs. The old machine was purchased five years ago and had an expected economic life of 10 years with no salvage value. The old machine has a book value of $2,000, and BSU Inc. expects to sell it for that amount. The new machine will decrease operating costs by $7,000 each year of its economic life. The straight-line depreciation depreciation method will be used for the new machine for a six-year period with no salvage value. Calculate cash payback period, internal rate of return, and apply decision rules. Instructions a. Determine the cash payback period. b. Determine the approximate internal rate of return. c. Assuming the company has a required rate of return of 10%, state your conclusion on whether the new machine should be purchased