Ayayai Industries is considering the purchase of new equipment costing $624,000 to replace existing equipment that will be sold for $93,600. The new equipment is expected to have a $104,000 salvage value at the end of its 2-year life. During the period of its use, the equipment will allow the company to produce and sell an additional 15,600 units annually at a sales price of $10 per unit. Those units will have a variable cost of $6 per unit. The company will also incur an additional $46,800 in annual fixed costs. Click here to view the factor table. (a) Calculate the net present value of the proposed equipment purchase. Assume that Ayayai uses a 6% discount rate. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,971. Enter negative amount using a negative sign preceding the number e.g. -59,992 or parentheses e.g. (59,992).) Net present value (b) Do you recommend that Ayayai Industries invest in the new equipment? TNO Your answer is partially correct. Try again. Novak Hammocks is considering the purchase of a new weaving machine to prepare fabric for its hammocks. The machine under consideration costs $147,334 and will save the company $20,000 in direct labor costs. It is expected to last 14 years. Click here to view the factor table. (a) Calculate the internal rate of return on the weaving machine. Internal rate of return Your answer is partially correct. Try again. The Concord Company is planning to purchase $506,800 of equipment with an estimated seven-year life and no estimated salvage value. The company has projected the following annual cash flows for the investment. Year Projected Cash Flows $207,000 157,000 112,000 52,800 52,800 37,000 37,000 $655,600 Total (a) Calculate the payback period for the proposed equipment purchase. Assume that all cash flows occur evenly throughout the year. Payback period years and months