Excaliber is considering the acquisition of a $324.450 machine that is expected to produce annival savings in cash operating costs of $90,000 over the next seven years. If Excaliber uses the internal rate of return (IRR) to evaluate new investments and the company has a hurdle rate of 22%, which of the following statements is correct, using the tables that follow? \begin{tabular}{cccccccccccc} & \multicolumn{8}{c}{ Future value of a Series of $1} & \multicolumn{2}{c}{ Cash Flows } \\ Periods & 48 & 68 & 88 & 108 & 128 & 148 & 168 & 188 & 208 \\ \hline 1 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 \\ 2 & 2.040 & 2.060 & 2.080 & 2.100 & 2.120 & 2.140 & 2.160 & 2.180 & 2.220 \\ 3 & 3.122 & 3.184 & 3.246 & 3.310 & 3.374 & 3.440 & 3.506 & 3.572 & 3.640 \\ 4 & 4.247 & 4.375 & 4.506 & 4.641 & 4.779 & 4.921 & 5.067 & 5.215 & 5.368 \\ 5 & 5.416 & 5.637 & 5.867 & 6.105 & 6.353 & 6.610 & 6.877 & 7.154 & 7.442 \\ 6 & 6.633 & 6.975 & 7.336 & 7.716 & 8.115 & 8.536 & 8.977 & 9.442 & 9.930 \\ 7 & 7.898 & 8.394 & 8.923 & 9.487 & 10.089 & 10.730 & 11.414 & 12.142 & 12.916 \\ 8 & 9.214 & 9.898 & 10.637 & 11.436 & 12.300 & 13.233 & 14.240 & 15.327 & 16.499 \\ 9 & 10.583 & 11.491 & 12.488 & 13.580 & 14.776 & 16.085 & 17.519 & 19.086 & 20.799 \\ 10 & 12.006 & 13.181 & 14.487 & 15.938 & 17.549 & 19.337 & 21.321 & 23.521 & 25.959 \\ \hline \end{tabular} \begin{tabular}{ccccccccccc} & \multicolumn{8}{c}{ Present value of \$1 } \\ Periods & 48 & 68 & 84 & 108 & 128 & 148 & 168 & 188 & 208 \\ 1 & 0.962 & 0.943 & 0.926 & 0.909 & 0.893 & 0.877 & 0.862 & 0.847 & 0.833 \\ 2 & 0.925 & 0.890 & 0.857 & 0.826 & 0.797 & 0.769 & 0.743 & 0.718 & 0.694 \\ 3 & 0.889 & 0.840 & 0.794 & 0.751 & 0.712 & 0.675 & 0.641 & 0.609 & 0.579 \\ 4 & 0.855 & 0.792 & 0.735 & 0.683 & 0.636 & 0.592 & 0.552 & 0.516 & 0.482 \\ 5 & 0.822 & 0.747 & 0.681 & 0.621 & 0.567 & 0.519 & 0.476 & 0.437 & 0.402 \\ 6 & 0.790 & 0.705 & 0.630 & 0.564 & 0.507 & 0.456 & 0.410 & 0.370 & 0.335 \\ 7 & 0.760 & 0.665 & 0.583 & 0.513 & 0.452 & 0.400 & 0.354 & 0.314 & 0.279 \\ 8 & 0.731 & 0.627 & 0.540 & 0.467 & 0.404 & 0.351 & 0.305 & 0.266 & 0.233 \\ 9 & 0.703 & 0.592 & 0.500 & 0.424 & 0.361 & 0.308 & 0.263 & 0.225 & 0.194 \\ 10 & 0.676 & 0.558 & 0.463 & 0.386 & 0.322 & 0.270 & 0.227 & 0.191 & 0.162 \\ \hline \end{tabular} Multiple Cholce The machine's IRR is less than 4%, and the machine should not be acquired. The machine's IRR is approximately 20%, and the machine should not be acquired. Multple Cholce The machine's lRR is less than 4%, and the mochine should not be acquired. The machines IRR is approximately 20%, and the machine should not be acquiled. The machine's IRR is approximately 20%, and the machine should be acquired. The machines IRR is approximately 22%, and the machine should be acquired. All of the stotements are faise
