Reno is considering purchasing computerized cutting and shaping equipment to replace its existing manual equipment. The existing equipment has a net book value of $190.000. a remaining useful life of 5 years and a zero salvage value at that time the equipment is sold today, management believes they would receive $190,000. The new equipment is expected to improve quality, is more efficient and will reduce annual operating costs by $ 200,000 for the first two years, and $ 150,000 for the next 3 years. Assume tax rate of 40%. a. Analyze the project using each of the following quantitative approaches: net present value, payback period, accrual accounting rate of return, and discounted payback period. b . Based solely on quantitative factors, should Reno undertake this project ? Why or why not? . What qualitative factors should Reno consider in making this decision? FV of $1 Period 8% 1 1.080 2 1.166 3 1.260 4 1.360 5 1.469 6 1.587 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1.714 1.851 1.999 2.159 2.332 2.518 2.720 2.937 3.172 3.426 3.700 3.996 4.316 4.661 PV of $1 8% 0.926 0.857 0.794 0.735 0.681 0.630 0.583 0.540 0.500 0.463 0.429 0.397 0.368 0.340 0.315 0.292 0.270 0.250 0.232 0.215 FV Annuity 8% 1.000 2.080 3.246 4.506 5.867 7.336 8.923 10.637 12.488 14.487 16.645 18.977 21.495 24.215 27.152 30.324 33.750 37.450 41.446 45.762 PV Annuity 8% 0.926 1.783 2.577 3.312 3.993 4.623 5.206 5.747 6.247 6.710 7.139 7.536 7.904 8.244 8.559 8.851 9.122 9.372 9.604 9.818