Problem 13.51 Waterway Property Management (Waterway) owns and manages apartment buildings. Each apartment building has a dedicated room for laundry facilities. One of the laundry facilities was equipped with older laundry machines and driers that consume more electricity than the newer ones. These machines were purchased 10 years ago, and they can last for another 10 years. The management is considering replacing these old machines with new energy efficient machines. Waterway's accountant has gathered the following comparison for the annual expenses: Annual Expenses Old Machines New Machines Electricity $19,300 $10,700 Water 6,000 5,200 Maintenance 4,400 5,800 Depreciation 2,900 4,100 The cost of the old machines was $58,000, and the new machines will cost $41,000. If the new machines are purchased, the old machines can be sold for $3,200 now. Both sets of machines will be disposed of in 10 years, with no residual value then. Waterway's required rate of return is 6%. In general, Waterway rejects projects with a payback period greater than 4 years. Your answer is correct. What is the project's payback period? (Round answer to 2 decimal places, e.g. 1.25.) Payback period 4.725 years LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Your answer is correct. What is the project's net present value? (Round entry to 2 decimal places, e.g. 5,275.64. Show a negative amount preceded by a minus sign e.g. -5,000.68 or (5,000.68). Use Time Value of Money Table values to 4 decimals, e.g. 0.5823.) Net present value 21080.8 LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT x] Your answer is incorrect. Try again. What is the project's internal rate of return? (Round answer to 2 decimal places, e.g. 1.25%.) Internal rate of return LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. Suppose you are the manager for this specific building, and your performance appraisal for the current year is based on the accounting income. Would you recommend proceeding with this project to replace the machines? (Round entry to whole amounts, e.g. 5,275. Show a negative amount preceded by a minus sign e.g. -5,000 or (5,000).) -20000 Accounting income Would you recommend proceeding with this project ? No LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT