If you insulate your office for $17,000, you will save $1,700 a year in heating expenses. These savings wil last forever. a. and b. What is the NPV of the irvestrient when the cost of capital is 8% ? What if it is 10% ? c. What is the IRR of the investment? Note: Enter your answer as a whole percent. d. What is the payback period on this investment? You are operating an old machine that is expected to produce a cash inflow of $7,000 in each of the next 3 years before it fails. You can replace it now with a new machine that costs $22,000 but is much more efficient and will provide a cosh flow of $13,000 oyear for 4 years. Colculate the equivalent annual cost of the new machine if the discount rate is 16%. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Should you replace your equipment now? Yes No A firm can lease a truck for G years at a cost of $44,000 annualy it can instead buy a truck of a cost or $94,000, with amuni maintenance expenses of $24,000. The truck will be sold ot the end of 6 years for $34,000 a. What is the equivalent annual cost of buying and maintaining the truck r the discount rate is 14 ? Note: Do not round intermediate calculations. Reund your answer to 2 decimal places. b. Which is the better option? Lease Buy