Carla Vista inc. wants to purchase a new machine for $40,110, excluding $1,200 of installation costs. The old machine was purchased 5 years ago and had an expected economic life of 10 years with no salvage value. The old machine has a book value of $2,000, and C arla Vista Inc. expects to sell it for that amount. The new machine will decrease operating costs by $8,500 each year of its economic life. The straight-line depreciation method will be used for the new machine for a b-year period with no salvage value. Click here to view PV table. (a) Determine the cash payback period. (Round cosh poyback period to 2 decimal ploces, es. 10.53.) Cash payback period years (b) Determine the approximate internal rate of return. (Round answer to O decimal ploces, es. 13\%. For calculation purposes, use 5 decimol ploces os disployed in the foctor toble provided. Internal rate of retum % (c) Assuming the company has a required rate of return of 7%, determine whether the new machine should be purchased. The imestment be accepted. TABLE 1 Future Value of 1 \begin{tabular}{lllllllllll} \hline 6 & 1.26532 & 1.34010 & 1.41852 & 1.50073 & 1.58687 & 1.67710 & 1.77156 & 1.87041 & 1.97382 & 2.31306 \\ \hline 7 & 1.31593 & 1.40710 & 1.50363 & 1.60578 & 1.71382 & 1.82804 & 1.94872 & 2.07616 & 2.21068 & 2.66002 \\ \hline 8 & 1.36857 & 1.47746 & 1.59385 & 1.71819 & 1.85093 & 1.99256 & 2.14359 & 2.30454 & 2.47996 & 3.05902 \\ \hline 9 & 1.42331 & 1.55133 & 1.68948 & 1.83846 & 1.99900 & 2.17189 & 2.35795 & 2.55503 & 2.77308 & 3.51788 \\ \hline 10 & 1.48024 & 1.62889 & 1.79085 & 1.96715 & 2.15892 & 2.36736 & 2.59374 & 2.83942 & 3.10585 & 4.04556 \\ \hline \end{tabular} TABLE 2 Future Value of an Annuity of 1 TABLE 3 Present Value of 1 Present Value af an A wwulter of 1