Chicago Hospital, a taxpaying entity, estimates that it can save $33,000 a year in cash operating costs for the next 8 years if it buys a special-purpose eye-testinng machine at a cost of $140,000. No terminal disposal value is expected. Chicago Hospital's required rate of return is 14%. Assume all cash flows occur at year-end except for initial investment amounts. Chicago Hospital uses straight-line depreciation. The income tax rate is 31% for all transactions that affect income taxes. Future Value of Annuity of $1 table Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Read the requirement Reference Requirement 1. Calculate the following for the special-purpose eye-testing machine: a. Net present value (NPR) (Round interim calculations and your final answers to the nearest whole dol lar. Use a minus sign or parentheses for a negative net present value.) (9,203) The net present value is $ b. Payback period (Round your answer to two decimal places.) The payback period is years. Enter any number in the edit fields and then click Check Answer. ? parts remaining 7 Clear All Check Answer Requirements 1. Calculate the following for the special-purpose eye-testing machine: Net present value . b. Payback period Internal rate of return C. d. Accrual accounting rate of return based on net initial investment Accrual accounting rate of return based on average investment . 2. How would your computations in requirement 1 be affected if the special-purpose machine had a $15,000 terminal disposal value at the end of 8 years? Assume depreciation deductions are based on the $140,000 purchase cost and zero terminal disposal value using the straight-line method. Answer briefly in words without further calculations. Print Done Chicago Hospital, a taxpaying entity, estimates that it can save $33,000 a year in cash operating costs for the next 8 years if it buys a special-purpose eye-testinng machine at a cost of $140,000. No terminal disposal value is expected. Chicago Hospital's required rate of return is 14%. Assume all cash flows occur at year-end except for initial investment amounts. Chicago Hospital uses straight-line depreciation. The income tax rate is 31% for all transactions that affect income taxes. Future Value of Annuity of $1 table Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Read the requirement Reference Requirement 1. Calculate the following for the special-purpose eye-testing machine: a. Net present value (NPR) (Round interim calculations and your final answers to the nearest whole dol lar. Use a minus sign or parentheses for a negative net present value.) (9,203) The net present value is $ b. Payback period (Round your answer to two decimal places.) The payback period is years. Enter any number in the edit fields and then click Check Answer. ? parts remaining 7 Clear All Check Answer Requirements 1. Calculate the following for the special-purpose eye-testing machine: Net present value . b. Payback period Internal rate of return C. d. Accrual accounting rate of return based on net initial investment Accrual accounting rate of return based on average investment . 2. How would your computations in requirement 1 be affected if the special-purpose machine had a $15,000 terminal disposal value at the end of 8 years? Assume depreciation deductions are based on the $140,000 purchase cost and zero terminal disposal value using the straight-line method. Answer briefly in words without further calculations. Print Done