> Question 3 of 5 -/30 (1) Using the net present value method for buying new or keeping the old. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. If the net present value is negative, use either a negative sign preceding the number eg 45 or parentheses eg (45) Round final answer to O decimal places, eg. 5.275.) New Backhoes Old Backhoes Net Present Value 1137000 $ $ 158007 Waterways should buy New Backhoes equipment (2) Using the payback method for each choice. (Hint: For the old machine, evaluate the payback of an overhaul) (Round answers to 2 decimal places, eg. 1.25) New Backhoes Old Backhoes Payback Period 1.27 years 36 years Waterways should retain Old Backhoe equipment. (3) Comparing the profitability index for each choice. (Round answers to 2 decimal places.es. 1.25) Old Backhoes New Backhoes Profitability Index Waterways should retain Old Backhoe equipment Question 3 of 5 > -/30 New Backhoes Old Backhoes Payback Period 1.27 years 3.4 years Waterways should retain Old Backhoes equipment. (3) Comparing the profitability index for each choice. (Round answers to 2 decimal places, eg. 1.25) New Backhoes Old Backhoes 3.62 Profitability Index 13 Waterways should retain Old Backhoes equipment Calculate the internal rate of return factor for the new and old blackhoes. (Round answers to 5 decimal places, es. 5.27647.) New Backhoes Old Backhoes IRR Factor 57 26 (4) Comparing the internal rate of return for each choice to the required 7% discount rate. Waterways should retain Old Backhoes equipment. Attempts: 0 of 1 used