Ranger Inc is considering the purchase of new equipment that will automate Product. on F thus reduce labor costs. Ranger made the following estimates related to the new machinery Require ment 1. calculate ( ) net presentvalue D. net present value is b. Payback period the payback period is inyrs c. calculate discounted Payback period The discounted payback fried The internal rate or return IRR Cost of equipment 149, ow Reduced Annual labor costs 50,000 Estimated life, of equipment loyrs Terminal disposal value $0 After tax cost of capital 12 Tax rate 35% Assume depreciation is calculated on a Straight line basis for tax purposed, Assume all cash flows occur at year end except for initial investment amounts