Grove Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income of $201,800. The equipment will have an initial cost of $1,201,800 and have an 8 year life. The salvage value of the equipment is estimated to be $201,800. The hurdle rate is 12%. Ignore income taxes. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.)

a.	What is the accounting rate of return? (Round your answer to 2 decimal places.)
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b.	What is the payback period? (Round your answer to one decimal place.)
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c.	What is the net present value? (Round "PV Factor" to 4 decimal places. Do not round intermediate calculations and round your final answer to the nearest dollar amount.)
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d.	What would the net present value be with a 13% hurdle rate? (Round "PV Factor" to 4 decimal places. Do not round intermediate calculations and round your final answer to the nearest dollar amount.)
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e.	Based on the NPV calculations, in what range would the equipments internal rate of return fall? (Round your answer to 2 decimal places.)
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