Briar Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $217,000. The equipment will have an initial cost of $1,217,000 and have an 8-year life. The salvage value of the equipment is estimated to be $217,000. The hurdle rate is 6%. Ignore income taxes. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor from the PV tables.) a. What is the accounting rate of return? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

b. What is the payback period? (Round your answer to the nearest whole number.)

c. What is the net present value? (Negative amounts should be indicated by a minus sign. Round your answer to nearest dollar amount.)

d. What would the net present value be with a 14% hurdle rate? (Negative value should be indicated by a minus sign. Round your answer to nearest dollar amount.)

e. Based on the NPV calculations, what would be the equipment's internal rate of return? (Round your answer to 2 decimal places.)