Mini-Exercise 16-7 (Algo) Net present ratio and IRR LO 16-7 Lakeside Incorporated is considering replacing old production equipment with state-of-the-art technology that will allow production cost savings of $7,500 per month. The new equipment will have a five-year ilfe and cost $315,000, with an estimated salvage value of $50,000. Lakeside's cost of capital is 10%. Table 64 and Table 65. Required: Calculate the present value ratio of the new production equipment. Note: Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals. Round your answer to 2 decimal places. Mini-Exercise 16-8 (Algo) Payback period and accounting rate of return LO 16-9, 16-10 Lakeside incorporated is considering replacing old production equipment with state-of-the-art technology that will allow production cost savings of $10,000 per month. The new equipment will have a five-year life and cost $420,000, with an estimated salvage value of $20,000. Lakeside's cost of capital is 10%, Lakeside Incorporated uses a straight-line depreciation method. Required: Calculate the payback period and the accounting rate of return for the new production equipment. Note: Round your answers to 2 decimal places