Blue Spruce Pix currently uses a six-year-old molding machine to manufacture silver picture frames. The company paid $100,000 for the machine, which was state of the art at the time of purchase. Although the machine will likely last another ten years, it will need a $10,000 overhaul in four years. More important, it does not provide enough capacity to meet customer demand. The company currently produces and sells 14,000 frames per year, generating a total contribution margin of $97,500. Martson Molders currently sells a molding machine that will allow Blue Spruce Pix to increase production and sales to 18,000 frames per year. The machine, which has a ten-year life, sells for $122,000 and would cost $10,000 per year to operate. Blue Spruce Pix's current machine costs only $8,000 per year to operate. If Blue Spruce Pix purchases the new machine, the old machine could be sold at its book value of $5,000. The new machine is expected to have a salvage value of $18,600 at the end of its ten-year life. Blue Spruce Pix uses straight-line depreciation. Click here to view the factor table. (a) Calculate the new machine's net present value assuming a 14% discount rate. {For calculation purposes, use 4decimal places as displayed in the factor table provided and round nal answer to 0 decimal place, eg. 58,971.) Net present value $ (b) Use Excel or a similar spreadsheet application to calculate the new machine's internal rate of return. (Round answer to 2 decimal places, as. 1.25%.) Internal rate of return ':I % eTextbook and Media Save for Later Attempts: 0 of 3 used (C) Calculate the new machine's payback period. (Round answer to 2 decimal places, es. 1.25.) Payback period |:| years