A Company uses a $12\%$ discount rate in evaluating capital investments. The Company uses traight$-$line depreciation. The average reported operating income for the company is $$1,630,500.$The option is enumerated below.

Purchase a new machine for the Outbound Department for $$550,000.$ The machine will increase productivity and all of the additional units manufactured can be sold. The cost of the machine is $$550,000$ and it has a $10-$year life. The net cash inflow is expected to be $$100,800$ each year for $10$ years. The company has used its current machine for many years and employees express continued frustrations with its operation, ongoing maintenance issues, and frequent work stoppages.

Compute the following for the above$-$referenced investment option:

$1.$Payback period$/$method $($assume cash inflows occur evenly throughout the year$)$

$2.$Unadjusted rate of return $($also called simple rate of return and accounting rate of return$)$

$3.$NPV $($assume that cash inflows occur at year$-$end$)$

$4.$Internal rate of return $($IRR$)$

$5.$ Present Value Index