Calculate the Accounting Rate of Return, Payback and Net present value for each alternatives below, please provide computations and formulas used.

Hurdle rate of 10%

New Machine - 10 year expected useful life
	Alternative A	Alternative B	Alternative C
Cost	2,000,000	2,500,000	2,250,000
Setup costs	25000	20000	50000
Training costs	15000	19000	0
Maintenance
Years, 3, 5, 7, & 9	45000
Years 3, 6, & 9		60000
Annual Maintenance Contract			7500
Refitting Costs
Year 4 and 8	40000
Year 3, 6, and 9		20000
None required, provided free by seller			0
Tax Savings from Depreciation (tax rate 20%)
Each year for 10 years	40000	50000	45000
Annual Cash savings from increased productivity
Years 1-4	100000	150000	200000
Years 5 - 8	75,000	90000	40000
Years 9 and 10	5000	14000	3000