Express Corporation wants to buy a new stamping machine. The machine will provide the company with a new product line: pressed food trays for kitchens. Two machines are being considered; the data for each machine follow. ETZ Machine LKR Machine Cost of machine $350,000 $370,000 Net income $39,204 $48,642 Annual net cash inflows $64,404 $75,642 Residual value $28,000 $40,000 Estimated useful life in years 10 10 The companys minimum rate of return is 16 percent, and the maximum allowable pay- back period is 5.0 years. Required 1. Compute the net present value for each machine. (Round to the nearest dollar.) 2. Compute the accounting rate of return for each machine. (Round to one decimal place.) 3. Compute the payback period for each machine. (Round to one decimal place.) 4. Accounting Connection From the information generated in requirements 13, decide which machine should be purchased. Why?