IV. Ice All Company would like to purchase a new machine that makes wonderfully smooth fruit sorbet that the company carn sell in the premium frozen dessert sections of supermarkets. The machine costs P450,000 and has a useful life of 10 years with a salvage value of P50,000. Annual revenue provided by the machine is P300,000. Operating expenses include advertising P100,000; salaries of operators, P70,000; maintenance, P30,000; and depreciation, P40,000. Ice All Company will not invest in new equipment unless it promises a payback period of 4 years or less. Required a. Compute the payback period of the ice cream machine. b. Compute the simple rate of return promised by the new machine. c. Compute the project's NPV. Use 15% desired rate of return. d. Compute the new machine's IRR. Hurdle rate is 18%. e. Identify whether the company should accept or reject the project from A up to D