Bowser Company's required rate of return is $14\%.$ The company is considering the purchase of three machines, as indicated below. Consider each machine independently. $($Ignore income taxes in this problem.$)$

Required:

Machine A will cost $$20,000$ and will have a useful life of $15$ years. Its salvage value will be $$1,800,$ and cost savings are projected at $$4,000$ per year. Calculate the machine's net present value.

How much should Bowser Company be willing to pay for Machine $B$ if the machine promises annual cash inflows of $$6,000$ per year for eight years?

Machine $C$ has a projected life of ten years. What is the machine's internal rate of return if it costs $$40,000$ and will save $7,000$ annually in cash operating costs? Would you recommend to Bowser Company to purchase Machine C$?$ Explain.