a nonprofit organization, estimates that it can save30000a year in cash operating costs for the next 9years if it buys a special-purpose eye-testing machine at a cost of 150000 . No terminal disposal value is expected.required rate of return is 12%. Assume all cash flows occur at year-end except for initial investment amounts.uses straight-line depreciation

1.

Calculate the following for thespecial-purpose eye-testingmachine:

a.

Net present value

b.

Payback period

c.

Internal rate of return

d.

Accrual accounting rate of return based on net initial investment

e.

Accrual accounting rate of return based on average investment

2.

What other factors should MetroClinic consider in deciding whether to purchase thespecial-purpose eye-testingmachine?