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BSU Inc. wants to purchase a new machine for $43,500, excluding $1,500 of installation costs. The old machine was bought five years ago and had

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BSU Inc. wants to purchase a new machine for $43,500, 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 $2,100, and BSU Inc. expects to sell it for that amount. The new machine would decrease operating costs by $9,000 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. Determine the cash payback period. (Round cash payback period to 1 decimal place, e.g. 10.5.) Cash payback period years Determine the approximate internal rate of return.(Round answer to 0 decimal places, eg.10. For calculation purposes, use 5 decimal places as displaced in the factor table provided.) Internal rate of return % Assuming the company has a required rate of return of 5%, determine whether the new machine should be purchased. The investment be accepted

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