Consider each part below independently. $($Ignore income taxes in your calculations.$)$

Use the built$-$in PV functions for these calculations. Enter $PV(n$;$i)$ in a value box to calculate the present value of $$1$ over $n$ compounding periods with a periodic rate of $i.$ Similarly, use PVA$(n$;$i)$ to calculate the

present value of an annuity. E$.$g$.,$ the present value of $$1,000$ with a periodic rate of $3\%,$ and $2$ compounding periods can be entered as $1000**PV(2$;$3).$

a$)$ XYZ Co$.\text{'}$s required rate of return is $18\%$ on all investments. The company can purchase a new machine at a cost of $$95,000.$ The new machine would generate cash inflows of $$26,000$ per year and have a $17-$

year useful life and no salvage value. Compute the machine's net present value and decide if the machine is an acceptable investment. Round your present values to the nearest dollar.

b$)$ EastCo is investigating the purchase of a new machine that has a project life of $11$ years. It is estimated that the new machine will save $$19,000$ per year in cash operating costs. If the new machine costs

$$112,822,$ what is its internal rate of return to the nearest whole percent? Is the machine an acceptable investment if the company's required rate of return is $15\%?$

c$)$ Refer to the data in b$)$ for EastCo. How much would the annual net cash flows $($cost savings$)$ have to be for the new machine to provide the required $15\%$ rate of return? Round your answer to the nearest dollar.

Annual net cash flows $=$$