Please solve Requirement 2. Choose the correct answer among the following choices for the 1st blank? decrease increase net change Choose the correct answer among the following choices for the 2nd blank? does not affect average annual operating income does not affect the net initial investment results in a decrease in average annual operating income results in a decrease to the net initial investment results in an increase in average annual operating income results in an increase in the total present value of cash inflows results in an increase to the net initial investment

Manchester Clinic, a taxpaying entity, estimates that it can save $29,000 a year in cash operating costs for the next 8 years if it buys a special-purpose eye-testing machine at a cost of $115,000. No terminal disposal value is expected. Manchester Clinic's required rate of return 1s 14% Assume all cash flows occur at year-end except for initial investment amounts. Manchester Clinic uses straight-line depreciation. The income tax rate is 38% or all transactions that affect income taxes. (Click the icon to view the Future Value of $1 factors.) (Click the icon to view the Future Value of Annuity of SI factors.) (Click the icon to view the Present Value of Annuity of $1 factors) (Click the icon to view the Present Value of $1 factors.) Read the requirements Requirement 1. Calculate the following for the special-purpose eye-testing machine: present value.) The net present value is S(6.248) b. Payback period (Round your answer to two decimal places.) The payback period is c, Internal rate of retum (Round the rate to two decimal places, x.xx%) 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 nus sign or parentheses fora 4.91 years 12.38 %