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Home Decor Pty Ltd is considering investing in a new machine to assemble its new product of high quality speakers. The machine is estimated to

Home Decor Pty Ltd is considering investing in a new machine to assemble its new product of high quality speakers. The machine is estimated to cost $124000 which can last for 5 years before it becomes unreliable and can be sold for scrap at $12,000. The project is estimated to bring in additional $40,000 net cash inflow annually with an annual 2% growth . The net cash flow in year 5 also includes the scrap value. The company plans to fund the purchase of the new machine using a bank loan with an interest rate of 10%. A. What is the ARR of the project?(Case sensitive. Type in 20.00 (two decimal places) for 20%.) B. How long is the payback period for this project? (Case sensitive. Type in 7.00 (two decimal places) for 7 years.) C. What is the NPV for this project? $ D. What is the IRR for this project? %

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