A commercial farm Is considering purchasing an automated milking machine to Improve day-to-day operations and increase the farm's output. To evaluate the purchase, the owner would like to consider capital budgeting criteria using the net present value (NPV), Internal rate of return (IRR), And profitability index (PI) Functions. The owner already knows the farm's cost of capital. What additional information does this owner need to perform the analysis?

1. Incremental cash flows associated with the purchase of the new machine.
2. Rate of return Used by other commercial farms.
3. Debt held by the farm and discretionary financing needed for the upcoming period
4. Salvage price of all machines that the farm Currently owns