Novak Fashions needs to replace a beltloop attacher that currently costs the company $58,000 in annual cash operating costs. This machine is of no use to another company, but it could be sold as scrap for $3.128. Managers have identified a potential replacement machine, Euromat's Model HD 435. The HD 435 is priced at $93,000 and would cost Novak Fashions $38,000 in annual cash operating costs. The machine has a useful life of 8 years, and it is not expected to have any salvage value at the end of that time. (a) Calculate the net present value of purchasing the HD-435, assuming Novak Fashions uses a 12% discount rate. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to O decimal place, es, 58,971) Net present values (b) Calculate the internal rate of return on the HD-435. (Round answer to decimal places, es 25%) Internal rate of return %6 Calculate the payback period of the HD-435. (Round answer to 4 decimal places, es 15.2515) Payback period years (d) Calculate the accounting rate of return on the HD 435. (Round answer to 2 decimal places, es 11.25%) Accounting rate of return % le) Should Novak Fashions purchase the HD-435? APPENDIX 9.1 Present value of $1 received in n periods. 4% 6% 10SE 119 Periods 1 2 3 4 5 0.6944 0.9615 0.9246 0.8890 0.8548 0.8219 5% 0.9524 0.9070 0.8638 0.8227 0.7835 0.9434 0.8900 0.8396 0.7921 0.7473 756 0.9346 0.8734 0.8163 0.7629 0.7130 8% 0.9259 0.8573 0.7938 0.7350 0.6806 9% 0.9174 0.8417 0.7722 0.7084 0.6499 0.9091 0.8264 0.7513 0.6830 0.6209 0.9009 0.8116 0.7312 0.6587 0.5935 1296 139 0.8929 0.8850 0.7972 0.7831 0.7118 0.6931 0.6355 0.6133 0.5674 0.5428 149 0.8772 0.7695 0.6750 0.5921 0.5194 16% 0.8621 0.7432 0.6407 0.5523 0.4761 18% 20% 0.8475 0.8333 0.7182 0.6086 0.5787 0.5158 0,4823 0.4371 0.4019 6 7 8 9 10 0.7903 0.7599 0.7307 0.7026 0.6756 0.7462 0.7107 0.6768 0.6446 0.6139 0.7050 0.6651 0.6274 0.5919 0.5584 0.6663 0.6302 0.5963 0.6227 0.5835 0.5470 0.5820 0.5403 0.5019 0.5439 0.5002 0.4604 0.5083 0.4632 0.4224 0.5645 0.5132 0.4665 0.4241 0.3855 0.5346 0.4817 0.4339 0.3909 0.3522 0.5066 0.4523 0.4039 0.3606 0.3220 0.4803 0.4251 0.3762 0.3329 0.2946 0.4556 0.3996 0.3506 0.3075 0.2697 0.4104 0.3704 0.3349 0.3538 0.3139 0.2791 0.3050 0.2660 0.2326 0.2630 0.2255 0.1938 0.2267 0.1911 0.1615 11 12 13 14 15 0.6496 0.6246 0.6006 0.5775 0.5553 0.5847 0.5568 0.5303 0.5051 0.4810 0.5268 0.4970 04688 0.4423 0,4173 0.4751 0.4289 0.3875 0.3505 0.3173 0.2875 0.2607 0.2366 0.1954 0.1619 0.1346 0.4440 0.3971 0.3555 0.3186 0.2858 0.2567 0.2307 0.2076 0.1685 0.1372 0.1122 0.4150 0.3677 0.3262 0.2897 0.2575 0.2292 0.2042 0.1821 0.1452 0.1163 0.0935 0.3878 0.3405 0.2992 0.2633 0.2320 0.2046 0.1807 0.1597 0.1252 0.0985 0.0779 0.3624 0.3152 0.27450.2394 0.2090 0.1827 0.1599 0.1401 0.1079 0.0835 0.0649 0.3387 0.2919 0.2519 0.2176 0.1883 0.1631 0.1415 0.1229 0.0930 0.0708 0.0541 0.3166 0.2703 0.2311 0.1978 0.1696 0.1456 0.1252 0.1078 0.0802 0.0600 0.0451 0.2959 0.2502 0.2120 0.1799 0.1528 0.13000.1108 0.0946 0.0691 0.0508 0.0376 0.2765 0.2317 0.1945 0.1635 0.1377 0.1161 0.0981 0.0829 0.0596 0.0431 0.0313 0.2584 0.2145 0.1784 0.1486 0.1240 0.1037 0.0868 0.0728 0.0514 0.0365 0.0261 16 0.5339 17 0.5134 18 0.4936 19 0.4746 20 0.4564 SI PV = (1 + 1)" 0.4581 0,3936 0.4363 0.3714 0.4155 0.3503 0.3957 0.3305 0.3769 0.3118 APPENDIX 9.2 Present value of an annuity of Si per period. 49 189 Periods 1 2 3 + 5 0.9615 1.8861 2.7751 3.6299 4.4518 5% 0.9524 1.8594 2.7232 3.5460 4.3295 6% 0.9434 1.8334 2.6730 3.4651 4.2124 7% 8 996 10% 0.9346 0.9259 0.9174 0.9091 1.8080 1.7833 1.7591 1.7355 2.6243 25771 2.5313 2.4868 3.3872 3.3121 3.2397 3.1698 4.1002 3.9927 3.8897 3.7907 11% 12% 0.9009 0.8929 1.7125 1.6901 2.4437 2.4018 3.1024 3.0373 3.6959 3.6048 13% 0.8850 1.6681 2.3612 2.9745 3.5172 14% 0.8772 1.6467 2.3216 2.9137 3.4331 16% 0.8621 1.6052 2.2459 2.7982 3.2743 0.8475 1.5656 2.1743 2.6901 3.1272 20% 0.8333 1.5278 2.1065 2.5887 2.9906 6 7 8 9 10 5.2421 6.0021 6.7327 7.4353 8.1109 5.0757 5.7864 6.4632 7.1078 7.7217 4.9173 5.5824 6.2098 6.8017 7.3601 4.7665 4.62294.4859 4.3553 5.3893 5.2064 5.0330 4.8684 5.9713 5.7466 5.5348 5.3349 6.51526,2469 5.9952 5.7590 7.0236 6.7101 64177 6.1446 4.2305 4.7122 5.1461 5.5370 5.8892 4.1114 3.9975 4.5638 4.4226 4.9676 4.7988 5.3282 5.1317 5.6502 5.4262 3.8887 4.2883 4.6389 4.9464 5.2161 3.6847 4,0386 4.3436 4.6065 4.8332 3.4976 38115 4.0776 4.3030 4.4941 3.3255 3.6046 3.8372 4.0310 4.1925 11 12 13 14 15 8.7605 9.3851 9.9856 10.5631 11.1184 8.3064 8.8633 9.3936 9.8986 10.3797 7.8869 8.3838 8.8527 9.2950 9.7122 7.4987 7.1390 6.8052 6,4951 7.9427 7.5361 7.1607 6.8137 8.3577 7.9038 7.4869 7.1034 8.7455 8.2442 7.78627.3667 9.1079 8.5595 8.0607 7.6061 6.2065 6,4924 6.7499 6.9819 7.1909 5.9377 5.6869 5.4527 5.0286 4.6560 6.1944 5.9176 5.6603 5.1971 4.7932 6.4235 6.1218 5.8424 5.34234.9095 6.6282 6.3025 6.0021 5.4675 5.0081 6.8109 6.4624 6.1422 5.5755 5.0916 4.3271 4.4392 4.5327 4.6106 4.6755 16 17 18 19 20 11.6523 12.1657 12.6593 13.1339 13.5903 10.8378 10.1059 9.4466 8.8514 8.3126 7.8237 7.3792 11.2741 10.4773 9.7632 9.1216 8.5436 8.0216 7.5488 11.6896 108276 10.0591 9.3719 8.7556 8.2014 7.7016 12.0853 11.1581 10.3356 9.6036 8.9501 8.3649 7.8393 12.4622 11.4699 10,5940 9.8181 9.1285 8.5136 7.9633 6.9740 7.1196 7.2497 7.3658 7.4694 6,6039 6.7291 6.8399 6.9380 7.0248 6.2651 6,3729 6.4674 6.5504 6,6231 5.6685 5.7487 5,8178 5.8775 5.9288 5.1624 5.2223 5.2732 5.3162 5.3527 4.7296 4.7746 4.8122 4.8435 4.8696 $1 - (1 + )" PVA = 1