required rate return . rejects with , $. , . Problem 13.51 Cheyenne Property Management (Cheyenne) awns 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. Cheyenne's accountant has gathered the following comparison for the annual expenses Annual Expenses Old Machines New Machines Electricity $19,800 $12,100 Water 6,100 5,400 Maintenance 4,600 6,100 Dcaredatian 3,000 4,100 The cost of the old machines was $60,000, and the new machines will cost $41,000. If the new machines are purchased, the old machines can be sold for $3,200 now. Bath sets of machines will be disposed of in 10 years, with na residual value then. Cheyenne's of is 6%. In general, Cheyenne projects 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.) Rayback period 5.50 years LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Your answer is correct What is the project's not present value? (Round entry to 2 decimal places, e.g. 5,275.64. Show a negative amount preceded by a minus sign .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 12994.69 LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Your answer is incorrect. Try again. What is the project's Intemal rate of return? (Round answer to 2 decimal places, e.g. 1.25%.) Intemal rate of return 10.02 LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Your answer is correct 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).) Accounting income 21000 Would you recommend proceeding with this project? No