Corn Doggy, Inc. produces and sells corn dogs. The corn dogs are dipped by hand. Austin Beagle, production manager, is considering purchasing a machine that will make the corn dogs. Austin has shopped for machines and found that the machine he w ants will cost $179 ,000. In addition, Austin estimates that the new machine will increase the company s annual net cash inflows by $22 ,000. The machine will have a 12 - year useful life and no salvage value.

a. Calculate the cash payback period.

b. Calculate th e machines internal rate of return.

c. Calculate the machines net present value us ing a discount rate of 8 %.

d. Calculate the machines annual rate of return. (Hint: You will need to calculate Net Income from the Net Annual Cash Flow amount that is gi ven in the problem).