ers net present alaes investment A's net present value am mounts ts Lloo 00 in ve investment and project Ba 5000 invutment Does this mean that A invest ment pprtunt I S qusstin thet Arancial that-Lannot Describe least-two--.gnssti at be ans wersd by the IncameStatement, balan Sheet, and netain Statment Rala shaus Problem No. 6. LeBron Company is considering two new machines that should produce considerable savings in its assembly operations. The cost of each machine is $15,000 and neither is expected to have a salvage value at the end of a 4-year useful life. LeBron's required rate of return is 12% and the company prefers that a project return its initial outlay within the first half of the project's life. The annual after-ax cash savings for each machine are provided in the following table: Annual After-tax Cash Savings Year Machine A 5,000 5,000 5,000 Machine B $ 8,000 6,000 4,000 2.000 2 4 Total $20,000 Required 1) Compute the payback period for each machine using the incremental approach and comment on the results 2) Compute the unadjusted rate of return based on average investment for each machine. The machines will be depreciated on a straight-line basis. 3) Compute the net present value for each machine. ISTG50 4) Which machine would you recommend? Explain your reasoning. Soed 5) Use the present value table to compute the approximate internal rate of return for Machine