40. Clyde Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $100,000. The equipment will have an initial cost of $600,000 and have an 8-year life. The equipment has no salvage value. You will need to calculate depreciation. The hurdle rate is 8%. What is the accounting rate of return? What is the payback period? What is the net present value? What would the net present value be with a 12% hurdle rate? Based on the NPV calculations, in what range would the equipment's internal rate of return fall?