E21-25 (similar to) Question Help Western Cola is considering the purchase of a special-purpose bottling machine for $45,000. It is expected to have a useful life of 4 years with no terminal disposal value. The plant manager estimates the following savings in cash operating costs: E(Click the icon to view the savings in cash operating costs.) Western Cola uses a required rate of return of 16% in its capital budgeting decisions. Ignore income taxes in your analysis. Assume all cash flows occur at year-end except for initial investment amounts. X Present Value of $1 table Present Value of Ar i Requirements Data Table Read the requirements Refe rence 1. Net present value. (Use factor amounts roun Calculate the following for the special purpose bottling machine: Year Amount 1. Net present value The net present value is $ $ 1 20,000 2. Payback period Discounted payback period 3. 2 14,000 Internal rate of return (using the interpolation method) 4. 13,000 Accrual accounting rate of return based on net initial investment (Assume straight-line depreciation. Use the average annual savings in cash operating costs when computing the numerator of the accrual accounting rate of return.) 5. 12,000 4 $ 59,000 Total Print Done Print Done