City Hospital, a nonprofit organization, estimates that it can save $ 23,000 a year in cash operating costs for the next 8 years if it buys a special-purpose eye-testing machine at a cost of $ 90 comma 000. No terminal disposal value is expected. City Hospital's required rate of return is 10%. Assume all cash flows occur at year-end except for initial investment amounts. City Hospital uses straight-line depreciation.

a. Net present value(NPV) (Use factors to three decimalplaces, X.XXX, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest wholedollar.)

The net present value is:______

.

b. Payback period (Round your answer to two decimalplaces.)

The number of years for the payback period is:______

.

c. Internal rate of return (Round the rate to two decimalplaces, X.XX%.)

The internal rate of return (IRR) is:_____

d. Accrual accounting rate of return based on net initial investment (Round interim calculations to the nearest whole dollar. Round the rate to two decimalplaces, X.XX%.)

Based on net initial investment, the accrual accounting rate of return (AARR) is: ____

.