Port Renovations, Incorporated (PRI) is considering purchasing a dredging machine. The purchase would require an initial full payment of $1,500,000. The machine is expected to generate $100,000 per month for 18 months, at which time it is expected to be sold as scrap for $400,000. Straight-line depreciation will be used over the machine's entire useful life. PRI's cost of capital is 1% per month. The applicable tax rate is 30%. 14. What is the NPV of the proposed purchase? ANSWER (10 POINTS):____ 15. What is the IRR? ANSWER (5 POINTS):_____ Present Value of an Ordinary Annuity of $ 1 1.0% 0.99010 1.5% 0.98522 2.0% 098029 2.5% 0.97561 2 1.97040 1.95588 194156 1.92742 3 4 5 3.76197 4.85343 4.78264 471346 4.64583 2.94099 2.91220 238388 2.85602 3.90197 3.85438 330773 530143 5.50813 647199 6.34939 732548 7.17014 816224 7.97087 838259 8.75206 978685 6 5.79548 5.09719 7 6.72819 6.59821 8 7.65168 7.48593 9 8.56602 8.36062 10 9.47130 9.22218 11 10.36763 10.07112 12 11.25508 10.90751 10.57534 13 12.13374 11.73153 9.51421 10.25776 1134837 10 98318 14 13.00370 12.54338 12 10625 11.69091 12.38138 15 13.86505 13.34323 1234926 16 14.71787 14.13128 13.57771 13.05500 17 15.56225 14.90765 14.29187 18 DEZ 14.99203 13.71220 14.35336 19 17 22601 18 42817 1567846 14 97889 16. What is the payback period? ANSWER (5 POINTS):____ 17. What is the Accounting Rate of Return? ANSWER (5 POINTS):____