Problem 16.38 (Algo) Accounting rate of return, payback, and NPV LO 16-7, 16-9, 16-10, 16-11 Tablerock Corporation is interested in reviewing its method of evaluating capltal expenditure proposits using the accounting rate of retuin method. A recent proposal involved a $107,000 investment in a machine that had an estimated useful life of five years and an estimated salvage value of $17,000. The machine was expected to increase net income (and cash llows before depreciation erpense by $30,000 per year The criteria for approving a new investment are thot it have a rate of retum of 10 om and a payback perlod of thiree years or less. Use Iable 64 Note: Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals. Required: 6. Calculate the accounting rate of return on this investment for the first year. Assume stralght-Whe dicpreciation. Based on this analysts, would the investment be made? b. Calculate the payback period for this investment, Bosed on this analysis. would the imvestment be made? c. Calculate the net present value of this investment using a cost of caphal of 10%. Based on this analysis, would the investirient be made? d. What recommendation would you make to the management of Toblerock Corporation about evaluaticig capital expenditure. proposials? Complete this question by entering your answers in the tabs below. Calculate the accounting rate of return on this investment for the finst year. Assume straight-line depreciation. Based on this analysis, would the investinent be made? Note pound your answer to 1 decimal aloce. able 6-4: Factors for Calculating the Present Value of $1 Complete this question by entering your answers in the tabs below. Calculate the payback period for this investment. Based on this analysis, would the invertment be made? Note: Round your answer to 2 decimal places, Complete this question by entering your answers in the tabs below. Calculate the net present value of this investment using a cost of capital of 10%. Based on this analysis, would the investment be made