Grove Corporation 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 $200,100. The equipment will have an initial cost of $1,200,100 and an 8-year useful life. The salvage value of the equipment is estimated to be $200,100. Groves cost of capital is 11%. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1)

Note: Use appropriate factor from the PV tables.

Required:

What is the accounting rate of return?

Note: Round your answer to 2 decimal places

What is the payback period?

Round your answer to 1 decimal place

What is the net present value?

Note: Do not round intermediate calculations and round your final answer to the nearest dollar amount.

What would the net present value be with a 14% cost of capital?

Note: Do not round intermediate calculations and round your final answer to the nearest dollar amount.

Based on the NPV calculations, what would be the equipment's internal rate of return?

Note: Round your answer to 2 decimal places.