Bonita Inc. wants to purchase a new machine for $$34,608,$ excluding $$1,300$ of installation costs. The old machine was bought five years ago and had an expected economic life of $10$ years without salvage value. This old machine now has a book value of $$1,900,$ and Bonita Inc. expects to sell it for that amount. The new machine would decrease operating costs by $$7,800$ each year of its economic life. The straight$-$line depreciation method would be used for the new machine, for a six$-$year period with no salvage value.

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$($a$)$

Determine the cash payback period. $($Round cash poyback period to $2$ decima' places, es $10\mathrm{.}53.)$

Cash payback period years

$($b$)$

Determine the approximate internal rate of return. $($Round answer to $0$ decimal places, e $3\%.$ For calculation purposes, use $5$ decimal places as displayed in the factor table provided.$)$

Internal rate of return $\%$

$($c$)$

Assuming the company has a required rate of return of $8\%,$ determine whether the new machine should be purchased. $.$

The investment $$ be accepted.