Determine the lease payment at which toby would be indifferent to purchasing or leasing the car

AP-21A Red Co. iS interested in replacing its old machine. The machine the company is considering purchasing costs 96,700 with a useful life of ten years. By replacing the old machine with a new one, the company en reduce annual maint ts useful life. If the company decides to accept this project, they can sell the old machine 520,000 at end of i for 32,000. Required a) Determine the payback period the new machine. b) Assume the company accepts projects if the payback period is less than the payback method, should Big Red replace its old machine? Now assume Big Red the company should accept the project using the method.