please, show me how you solve the problem. thanks in advance

E16.6 BSU Inc. wants to purchase a new machine for $29,300, excluding $1,500 of installation costs. The old machine was bought five years ago and had an expected economic life of 10 years without salvage value. This old machine now has a book value of $2,000, and BSU Inc. expects to sell it for that amount. The new machine would decrease operating costs by $7,000 each year of its economic life. The straight-line depreciation method would be used for the new machine, for a six-year period with no salvage value. Instructions (a)Determine the cash payback period. (b)Assuming the company has a required rate of return of 12%, state your conclusion with the help of NPV on whether the new machine cho bocad