Fabian Company is considering the purchase of a piece of materials-handling equipment: Net initial investment Estimated Useful life $125,000 Estimated terminal disposal price 8 years $10,000 Estimated annual cash operating savings $35,000 Required rate of return 10% Depreciation method: straight line Required: a) Net Present Value 2 marks b) Payback period 2 marks c) Discounted payback period 2 marks d) Internal rate of return 2 marks e) Accrual accounting rate of return 2 marks f) Net Present Value with CCA Tax Shield 2 marks g) Two qualitative factors to be considered other than the calculation from a) to f). 2 marks * Plesae use the PV / FV table on eCentennial in your calculation ***Show your work. Marks will not be awarded to anwer withou workings Total 14 marks **Class 8 asset (CCA of 20%); Tax rate 40%