Clyde Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $101,100. The equipment will have an initial cost of $601,100 and have an 8 year life. The equipment has no salvage value. The hurdle rate is 8%. Ignore income taxes. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor from the PV tables.) a. What is the accounting rate of return? (Round your answer to 2 decimal places.)

b. What is the payback period? (Round your answer to 1 decimal place.)

c. What is the net present value? (Do not round intermediate calculations. Negative value should be indicated by a minus sign. Round your answer to nearest whole number.)

d. What would the net present value be with a 13% hurdle rate? (Do not round intermediate calculations. Negative value should be indicated by a minus sign. Round your answer to nearest whole number.)

e. Based on the NPV calculations, what would be the equipment's internal rate of return? (Round your answer to 2 decimal places.)