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Jefferson Labs, a nonprofit organization, estimates that it can save $23,000 a year in cash operating costs for the next 8 years if it buys

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Jefferson Labs, a nonprofit organization, estimates that it can save $23,000 a year in cash operating costs for the next 8 years if it buys a special-purpose eye-testing machine at a cost of S90 000 No terminal disposal value is expected Jefferson Labs' re ured rate o return is 14% Assume all cash flows occur at year end except for initial investment amounts. Jeferson Labs uses straight-line depreciation Euture Value of Annuity of $1.table Euture Value of $1 table Present Value of Annuity of $1.table Present Value.of $1 table Read the requirements Requirement 1. Calculate the following for the special-purpose eye-testing machine a Not presont value (NPV) Usa factors to three decimal places, X X00%, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest whole dollar) The net present value is $ b. Payback period (Round your answer to two decimal places) The payback period is years c. Internal rate of return (Round the rate to two docmal places, XXX% ) The internal rate of return (IRR) is d. Accrual accounting rate of return based on net initial investmont (Round interim calkculations to the nearest wholo dollar: Round the rate to two decimal places, XXX% ) % based on net initial investment The accrual accounting rate of return (AARR) is e. Accrual accounting rate of roturn based on average investment (Round interim calculations to the nearest whole dollar Round the rate to two decimal places XXX% ) The accrual accounting rate of return (AARR) is % based on average investment Requirement 2. What other factors should Jefferson Labs consider in deciding whether to purchase the special purpose eye testing machine? O A. Financing factors, such as the availability of cash to purchase the new equipment Qualtative factors, such as the benefits to its custo mers of a better eye testing machine and the employee morale advantages of ha ng up tod to . equipment O C. Quantitative financial aspects O D. All of the above O E. None of the above. Using all four of the capital budgeting methodologies trom requirement 1 will give management sufficient information to determine whether or not an investment in the eye testing machine meets the organzation goals of the company

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