ABC Company is considering purchasing a new machine for $50,000. The new facility will gene sal net cash inflows if $20,000 for six years. At the end of the six years the residual value. The company uses straight-line depreciation, and its stockholders demand al of 12% on investments of this nature Present value of an ordinary annuity of $1 12% 130 14% 15% 0893 0.885 0877 0.87 2 1.69 1668 1647 1626 3 2.402 2.361 2.322 2.283 4 3.037 2974 2.914 2.855 5 3.605 3517 3.433 3.352 6 4.111 3,998 3.889 3.784 7 4,564 4.423 4.288 4.160 Requirements Compute: a. Payback b. ARR (Accounting Rate of Return) C. NPV d. IRR (give a range) e. PI (Profitability Index) TEN+F10 (Mac) points 10 points ABC Company is considering purchasing a new machine for $80,000. The new facility will generate annual net cash inflows of $20,000 for six years. At the end of the six years the machine will have residual value. The company uses straight-line depreciation, and its stockholders demand an annual return of 12% on investments of this sate Present value of an ordinary annuity of 51: 12% 13% 14% 15% 0.893 0.885 0.877 0.87 2 1.69 1.668 1.647 1.626 3 2.402 2.361 2.322 2.283 4 3.037 2.974 2.914 2.855 3.605 3.517 3.433 3352 residual value. The company uses straight-line depreciation, and its stockholders demand an annual reruns of 12% on investments of this stor GOWN OF $20,000 for six years the years the machine will have Present value of an ordinary annuity of $1 12% 13% 14% 15% I 0.893 0.885 0.877 0.87 2 1.09 1.668 1.647 1626 3 2.402 2.361 2.322 2.283 4 3.037 2.974 2.914 2.855 5 3.605 3.517 3.433 3.352 6 4.111 3.998 3.889 3.784 7 4.564 4.423 4.288 4.160 Requirements Compute: a. Payback b. ARR (Accounting Rate of Return) C. NPV d. IRR (give a range) e. PI (Profitability Index) 10 m) or al T+FN+F10 (Mac). T X B