Flint Growth Farms, a farming cooperative, is considering purchasing a tractor for $568,380. The machine has a 10-year life and an estimated salvage value of $56,000. Delivery costs and set-up charges will be $14,100 and $440, respectively. Top Growth uses straight-line depreciation and has a required rate of return of 9%.

Flint Growth estimates that the tractor will be used five times a week with the average charge to the individual farmers of $440. Fuel is $60 for each use of the tractor. The present value of an annuity of 1 for 10 years at 9% is 6.41766.

For the new tractor, compute the:

Part (a) Calculate the payback period.

Part (b) Calculate the net present value.

Part (c) Calculate the accounting rate of return