Culver Pix currently uses a six-year-old molding machine to manufacture silver picture frames. The company paid $ 95,000 for the machine, which was state of the art at the time of purchase. Although the machine will likely last another ten years, it will need a $ 12,000 overhaul in four years. More important, it does not provide enough capacity to meet customer demand. The company currently produces and sells 9,000 frames per year, generating a total contribution margin of $ 92,500. Martson Molders currently sells a molding machine that will allow Culver Pix to increase production and sales to 12,000 frames per year. The machine, which has a ten-year life, sells for $ 137,000 and would cost $ 10,000 per year to operate. Culver Pix's current machine costs only $ 8,000 per year to operate. If Culver Pix purchases the new machine, the old machine could be sold at its book value of $ 5,000. The new machine is expected to have a salvage value of $ 20,100 at the end of its ten-year life. Culver Pix uses straight-line depreciation. Click here to view the factor table. (a) Calculate the new machine's net present value assuming a 14% discount rate. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,971.) Net present value $ (b) Use Excel or a similar spreadsheet application to calculate the new machine's internal rate of return. (Round answer to 2 decimal places, e.g. 1.25%.) Internal rate of return % e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (c) Calculate the new machine's payback period. (Round answer to 2 decimal places, e.g. 1.25.) Payback period years