Bellevue Toyota is facing a decision on investing in

an add campaign and purchasing a new machine.

Using the material from this chapter, should they

take on this project?

Use the Texas Instruments BAIl+ Calculator. Also, show your work in detail including formulas, payback period, etc. On your answer sheet, please include the values entered for : I (interest rate), CFO, CF1,

CF2, etc.

2. Bellevue Toyota service department a subsidiary of Bellevue Toyota, is looking to replace one of the machines they use to do alignments with a new, more efficient model. The incremental cash flows of the new machine are as follows. Bellevue Toyota's cost of capital is 11%. Initial Investment: $12,190 Operating Cash Flows by year: a. Calculate the payback period of the new machine. b. Calculate the net present value of the new machine. c. Calculate the internal rate of return of the new machine. Should the machine be accepted