Grouper Fashions needs to replace a beltloop attacher that currently costs the company $53,000 in annual cash operating costs. This machine is of no use to another company, but it could be sold as scrap for $3,128. Managers have identified a potential replacement machine, Euromat's Model HD-435. The HD-435 is priced at $102,000 and would cost Grouper Fashions $33,000 in annual cash operating costs. The machine has a useful life of 8 years, and it is not expected to have any salvage value at the end of that time. Click here to view the factor table. (a) Calculate the net present value of purchasing the HD-435, assuming Grouper Fashions uses a 12% discount rate. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to O decimal place, e.g. 58,971.) Net present value $ (b) Calculate the internal rate of return on the HD-435. (Round answer to O decimal places, e.g. 25%.) Internal rate of return % (c) Calculate the payback period of the HD-435. (Round answer to 4 decimal places, e.g. 15.2515.) Payback period years (d) Calculate the accounting rate of return on the HD-435. (Round answer to 2 decimal places, e.g. 11.25%.) Accounting rate of return % (e) Should Grouper Fashions purchase the HD-435? Periods 4% 1 5% 6% 0.9615 0.9524 0.9434 0.9346 7% 2 0.9246 0.9070 0.8900 3 0.8890 0.8638 0.8396 0.8734 0.8163 4 0.8548 0.8227 0.7921 0.7629 5 0.8219 0.7835 0.7473 0.7130 APPENDIX 9.1 Present value of $1 received in n periods. 9% 10% 11% 13% 14% 16% 18% 20% 0.8772 0.8621 0.8475 0.8333 8% 12% 0.9259 0.9174 0.9091 0.9009 0.8929 0.8850 0.8573 0.8417 0.8264 0.8116 0.7972 0.7831 0.7695 0.7432 0.7182 0.6944 0.7938 0.7722 0.7513 0.7312 0.7118 0.6931 0.6750 0.6407 0.6086 0.5787 0.7350 0.7084 0.6830 0.6587 0.6355 0.6133 0.5921 0.5523 0.5158 0.4823 0.6806 0.6499 0.6209 0.5935 0.5674 0.5428 0.5194 0.4761 0.4371 0.4019 6 0.7903 0.7462 0.7050 0.6663 7 0.7599 0.7107 0.6651 0.6227 8 9 10 0.7307 0.6768 0.6274 0.7026 0.6446 0.5919 0.6756 0.6139 0.5584 0.5439 0.6302 0.5963 0.5645 0.5346 0.5066 0.4803 0.4556 0.4104 0.3704 0.3349 0.5835 0.5470 0.5132 0.4817 0.4523 0.4251 0.3996 0.3538 0.3139 0.2791 0.5820 0.5403 0.5019 0.4665 0.4339 0.4039 0.3762 0.3506 0.3050 0.2660 0.2326 0.5002 0.4604 0.4241 0.3909 0.3606 0.3329 0.3075 0.2630 0.2255 0.1938 0.5083 0.4632 0.4224 0.3855 0.3522 0.3220 0.2946 0.2697 0.2267 0.1911 0.1615 =2332 11 12 13 14 15 0.6496 0.5847 0.5268 0.4751 0.4289 0.3875 0.3505 0.3173 0.6246 0.5568 0.4970 0.4440 0.3971 0.3555 0.3186 0.2858 0.6006 0.5303 0.4688 0.4150 0.3677 0.3262 0.2897 0.2575 0.5775 0.5051 0.4423 0.3878 0.3405 0.2992 0.2633 0.2320 0.5553 0.4810 0.4173 0.3624 0.3152 0.2745 0.2394 0.2090 0.2875 0.2607 0.2366 0.1954 0.1619 0.1346 0.2567 0.2307 0.2076 0.1685 0.1372 0.1122 0.2292 0.2042 0.1821 0.1452 0.1163 0.0935 0.2046 0.1807 0.1597 0.1252 0.0985 0.0779 0.1827 0.1599 0.1401 0.1079 0.0835 0.0649 16 0.2919 17 18 19 20 28 0.5339 0.4581 0.3936 0.3387 0.2519 0.2176 0.1883 0.1631 0.1415 0.1229 0.0930 0.0708 0.0541 0.5134 0.4363 0.3714 0.3166 0.2703 0.2311 0.1978 0.1696 0.1456 0.1252 0.1078 0.0802 0.0600 0.0451 0.4936 0.4155 0.3503 0.2959 0.2502 0.2120 0.1799 0.1528 0.1300 0.1108 0.0946 0.0691 0.0508 0.0376 0.4746 0.3957 0.3305 0.2765 0.2317 0.1945 0.1635 0.1377 0.1161 0.0981 0.0829 0.0596 0.0431 0.0313 0.4564 0.3769 0.3118 0.2584 0.2145 0.1784 0.1486 0.1240 0.1037 0.0868 0.0728 0.0514 0.0365 0.0261 $1 PV= (1 + i)" APPENDIX 9.2 Present value of an annuity of $1 per period. 1 2 3 Periods 4% 5% 6% 0.9615 0.9524 0.9434 1.8861 1.8594 1.8334 2.7751 4 3.6299 5 4.4518 7% 8% 9% 10% 0.9346 0.9259 0.9174 0.9091 1.8080 1.7833 1.7591 1.7355 2.7232 2.6730 2.6243 2.5771 2.5313 2.4868 3.5460 3.4651 3.3872 3.3121 3.2397 3.1698 4.3295 4.2124 4.1002 3.9927 3.8897 3.7907 11% 12% 13% 14% 16% 18% 0.9009 0.8929 0.8850 0.8772 0.8621 0.8475 0.8333 1.7125 1.6901 1.6681 1.6467 1.6052 1.5656 1.5278 2.4437 2.4018 2.3612 2.3216 2.2459 2.1743 2.1065 3.1024 3.0373 2.9745 2.9137 2.7982 2.6901 2.5887 3.6959 3.6048 3.5172 3.4331 3.2743 3.1272 2.9906 20% 6 5.2421 7 6.0021 8 9 7.4353 7.1078 6.8017 10 8.1109 7.7217 7.3601 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 6.5152 6.2469 5.9952 5.7590 6.1446 7.0236 6.7101 6.4177 4.2305 4.1114 3.9975 3.8887 3.6847 3.4976 3.3255 4.7122 4.5638 4.4226 4.2883 4.0386 3.8115 3.6046 5.1461 4.9676 4.7988 4.6389 4.3436 4.0776 3.8372 5.5370 5.3282 5.1317 4.9464 4.6065 4.3030 4.0310 5.8892 5.6502 5.4262 5.2161 4.8332 4.4941 4.1925 11 8.7605 8.3064 7.8869 12 13 14 15 9.3851 8.8633 8.3838 9.9856 9.3936 8.8527 10.5631 9.8986 9.2950 11.1184 10.3797 9.7122 7.4987 7.1390 6.8052 6.4951 7.9427 7.5361 7.1607 6.8137 6.4924 6.1944 5.9176 5.6603 8.3577 7.9038 7.4869 7.1034 6.7499 6.4235 6.1218 5.8424 8.7455 8.2442 7.7862 7.3667 6.9819 6.6282 6.3025 6.0021 9.1079 8.5595 8.0607 7.6061 7.1909 6.8109 6.4624 6.1422 6.2065 5.9377 5.6869 5.4527 5.0286 4.6560 4.3271 5.1971 4.7932 4.4392 5.3423 4.9095 4.5327 5.4675 5.0081 4.6106 5.5755 5.0916 4.6755 16 17 18 19 20 11.6523 10.8378 10.1059 9.4466 8.8514 8.3126 7.8237 12.1657 11.2741 10.4773 9.7632 9.1216 8.5436 8.0216 12.6593 11.6896 10.8276 10.0591 9.3719 8.7556 8.2014 13.1339 12.0853 11.1581 10.3356 9.6036 8.9501 8.3649 13.5903 12.4622 11.4699 10.5940 9.8181 9.1285 8.5136 7.7016 7.2497 7.8393 7.3658 7.9633 7.4694 7.3792 6.9740 6.6039 6.2651 5.6685 5.1624 4.7296 7.5488 7.1196 6.7291 6.3729 5.7487 5.2223 4.7746 6.8399 6.4674 5.8178 5.2732 4.8122 6.9380 6.5504 5.8775 5.3162 4.8435 7.0248 6.6231 5.9288 5.3527 4.8696 1 $1- PVA= (1+i)" i