Answer the following. $($Ignore income tax effects.$)$ The Calculations for a$.$ b$.$ and c$.$ should be performed in Excel a$.$ Calculate the annual rate of return for the new machine. $($Round to two decimals.$)$ b$.$ Compute the cash payback period for the new machine. $($Round to two decimals.$)$ c$.$ Compute the net present value of the new machine. $($Round to the nearest dollar.$)$ d$.$ On the basis of the foregoing data, would you recommend that Luang buy the machine? Answer the following. $($Ignore income tax effects.$)$ The Calculations for a$.$b$.$ and c$.$ should be performed in Excel a$.$ Calculate the annual rate of return for the new machine. $($Round to two decimals.$)$ b$.$ Compute the cash payback period for the new machine. $($Round to two decimals.$)$ c$.$ Compute the net present value of the new machine. $($Round to the nearest dollar.$)$ d$.$ On the basis of the foregoing data, would you recommend that Luang buy the machine?Decision$-$Making Across the Organization CT$25\mathrm{.}1$ Luang Company is considering the purchase of a new machine. Its invoice price is $\backslash (\backslash$$ $122,000\backslash ),$ freight charges are estimated to be $\backslash (\backslash$$ $3,000\backslash ),$ and installation costs are expected to be $\backslash (\backslash$$ $5,000\backslash ).$ Salvage value of the new machine is expected to be zero after a useful life of $4$ years. Existing equipment could be retained and used for an additional $4$ years if the new machine is not purchased. At that time, the salvage value of the equipment would be zero. If the new machine is purchased$-$now, the existing machine would be scrapped. Luang's accountant, Lisa Hsung, has accumulated the following data regarding annual sales and expenses with and without the new machine. $-1.$ Without the new machine, Luang can sell $10,000$ units of product annually at a per unit selling price of $\backslash (\backslash$$ $100\backslash ).$ If the new unit is purchased, the number of units produced and sold would increase by $\backslash (25\backslash \%\backslash ),$ and the selling price would remain the same. $-2.$ The new machine is faster than the old machine, and it is more efficient in its usage of materials. With the old machine the gross profit rate will be $\backslash (28\mathrm{.}5\backslash \%\backslash )$ of sales, whereas the rate will be $\backslash (30\backslash \%\backslash )$ of sales with the new machine. $($Note: These gross profit rates do not include depreciation on the machines. For purposes of determining net income, treat depreciation expense as a separate line item.$)-3.$ Annual selling expenses are $\backslash (\backslash$$ $160,000\backslash )$ with the current equipment. Because the new equipment would produce a greater number of units to be sold, annual selling expenses are expected to increase by $\backslash (10\backslash \%\backslash )$ if it is purchased. $-4.$ Annual administrative expenses are expected to be $\backslash (\backslash$$ $100,000\backslash )$ with the old machine, and $\backslash (\backslash$$ $112,000\backslash )$ with the new machine. $-5.$ The current book value of the existing machine is $\backslash (\backslash$$ $40,000\backslash ).$ Luang uses straight$-$line depreciation. $-6.$ Luang's management has a required rate of return of $\backslash (15\backslash \%\backslash )$ on its investment and a cash payback period of no more than $3$ years.