BSU Inc. wants to purchase a new machine for $41,100, excluding $1,500 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 $2,300, and BSU Inc. expects to sell it for that amount. The new machine would decrease operating costs by $9,800 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.

BSU Inc. wants to purchase a new machlne for $41,100, excluding $1,500 of instaliation costs. The old machine was bought ve years ago and had an expected economic life of 10 years without salvage value. Thls old machine now has a book value of $2,300, and BSU Inc. expects to sell it For that amount. The new machine would decrease operating costs by $9,800 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. Cllck here to View W table. (3) Determine the cash payback period. (Round cash payback period to 1 decimai place, e.g. 10.5.) Cash payback period years 0') Determine the approxln'late internal rate of return. (Round answer to 0 decimalI places, e.g. 1 D. For caicuiatian purposes, use 5 decimai places as dismayed in the factor tame provided.) Internal rate of return Wu (=l Assuming the company has a required rate of return of 10%, determlne whether the new machine should be purchased. The investmentl I he accepted