Manchester Clinic, a nonprofit organization, estimates that it can save $$23,000$ a year in cash operating costs for the next $8$ years if it buys a special$-$purpose eye$-$testing machine at a cost of $$90,000.$ No terminal disposal value is expected. Manchester Clinic's required rate of return is $10\%.$ Assume all cash flows occur at year$-$end except for initial investment amounts. Manchester Clinic uses straight$-$line depreciation.

Present Value of $$1$ table

Present Value of Annuity of $$1$ table

Future Value of $$1$ table

Future Value of Annuity of $$1$ table

Read the requirements.

Requirement $1.$ Calculate the following for the special$-$purpose eye$-$testing machine:

a$.$ Net present value $($NPV$)($Use factors to three decimal places,

X$.$XXX$,$ 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 number of years for the payback period is

c$.$ Internal rate of return $($Round the rate to two decimal places, XXX$\%.$ Do not enter the $\%$ symbol into the input field.$)$

The internal rate of return $($IRR$)$ is $\%.$

d$.$ Accrual accounting rate of return based on net initial Investment $($Round interim calculations to the nearest whole dollar. Round the rate to two decimal places, XXX$\%.$ Do not enter the $\%$ into the input field.$)$

Based on net initial investment, the accrual accounting rate of return $($AARR$)$ is $\%.$

e$.$ Accrual accounting rate of return based on average investment $($Round interim calculations to the nearest whole dollar. Round the rate to two decimal places, X$.$XX$\%.$ Do not enter the $\%$ symbol into the input field.$)$