Barry Cabs is a sole proprietorship that owns and operates onetaxi cab. The company purchased its cab 5 years ago for $40,000. When it purchased the cab it expected it to be useful for 8 years with a residual value of$5,000. Barry thinks he could sell the cab today for $14,000. Barry is considering replacing the old cab with a new, allielectric taxi. The all electric car would cost $60,000 and would have an expected useful life ofB years. Over its 8 year life, the cab would reduce annual operating costs (mostly gas and maintenance) by $8,000 per year for the rst 6 years, and $10,000 per year thereafter. After 8 years, it is expected thetaxi would have a $2,000 residual value. Barry's cost of borrowing is 15% and assume no tax implications. Required: 1 What is the payback period for replacing the exiting cab with the new electric taxi? {2 marks) 2 What is the net present value of replacing the existing cab with the new electric one? {4 marks) 3 What is the internal rate of return for replacing the existing cab with the new electric one? {2 marks) 4 What is the protability index for replacing the existing cab with the new electric one? {2 marks)