Johnson Company is considering purchasing one of two new machines. The following estimates are available for each machine:

		Machine 1			Machine 2
Initial cost		$152,000			$169,000
Annual cash inflows		50,000			60,000
Annual cash outflows		15,000			20,000
Estimated useful life		6 years			6 years

The company's minimum required rate of return is 9%.

		Present Value of an Annuity of 1
Period		8%		9%		10%		11%		12%		15%
6		4.623		4.486		4.355		4.231		4.111		3.784

Requirement:

Compute Payback, NPV, PI, and IRR for both machine options? Which machine should be selected? Show your work.