except for initial investment amounts. Medicine Hat Inc. uses straight$-$line depreciation for its machines.

$($Click the icon to view the present value of $$1$ factors.$)($Click the icon to view the present value annuity of $$1$ factors.$)$

Required

The NPV is $$37116.$

Requirement $2.$ Calculate IRR. $($Round your answer to two decimal places.$)$

The IRR is $,.$

Required

Calculate NPV$.$

Calculate IRR.

Calculate AARR based on net initial investment.

Calculate AARR based on average investment.

You have the authority to make the purchase decision. Why might you be

reluctant to base your decision on the DCF methods?