Problem 1 (20 Marks) Myrna's Gardening is considering the purchase of new lawn equipment. A supplier has offered a package that will replace Myrna's current equipment. The package price is $30,000, Myma believes the equipment will make her more efficient, and therefore it will increase her annual net cashflow and net income for the next five year as below. The equipment will have a 5-year useful life and have no salvage value. Myra's cost of capital is 8%. Year 1 Year 2 Year 3 Year 4. Year 5 Net Incomes 10,000 11,000 12,000 12,500 13,500 Net Cash Flows 16,000 17,000 18,000 18,500 19,500 PV of 18% 0.9259 0.8573 0.7938 0.7350 0.6806 Instructions a) Calculate the cash payback perjod. b) Calculate the machine's internal rate of return. c) Calculate the machine's net present value using a discount rate of 8%. d) Calculate the Profitability Index e) Calculate the Average Annual Rate of Return Problem: Mcintosh End and S9 of fixed o Mcintosh has the p Determine the ing the special co