A machine costs $180,000 and will have an eight-year life, a $20,000 salvage value, and straight line depreciation is used. Management estimates the machine will yield an after-tax net income of $12,500 each year. Compute the accounting rate of return for the investment Poe Company is considering the purchase of new equipment costing $80,000. The projected annual cash inflows are $30,200, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of $1 and present value of an annuity of $1 for different periods is presented below. Compute the net present value of the machine Periods Present Value of $1 at 10%. .9091 0.8264 0.7514 0.6830 Present Value of an Annuity of $1 at 10% 0.9091 1.7355 2.4869 3.1699