ABC Company is considering the purchase of a new machine that would cost $$48,000.$ The machine would have a useful life of $10$ years. ABC Company plans on using straight$-$line depreciation with an estimated salvage value of $$0.$ ABC Company has a hurdle rate of $10\%$ and is subject to an income tax rate of $70\%.$ The annual cash income is estimated to be $$20,000.$ PV TABLES.

$3.$ The Accounting Rate of Return $($AROR$)$ is:

A$.8\mathrm{.}5\%$B$.11\mathrm{.}5\%.10\mathrm{.}5\%$D$.9\mathrm{.}5\%$

$4.$ The Net Present Value $($NPV$)$ is:

A$.$ $$11,517$B$.$ $$10,517$C$.$ $$8,517$

D$.$ $$9,5175.$

The Profitability Index $($PI$)$ is:

A$.1\mathrm{.}298$B$.1\mathrm{.}198$C$.1\mathrm{.}098$D$.1\mathrm{.}3986.$

The Payback period is:

A$.5\mathrm{.}128$ years B$.5\mathrm{.}228$ years C$.5\mathrm{.}028$ years D$.5\mathrm{.}328$ years

$7.$ Using interpolation, the Internal Rate of Return $($IRR$)$ is:

A$.14\mathrm{.}5\%$B$.13\mathrm{.}5\%.12\mathrm{.}5\%$D$.15\mathrm{.}5\%$