Requirement 1. Calculate net present value. (Use factors to three decimal places, X.XXX, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest whole dollar.) The net present value is $ 65,356 Requirement 2. Calculate internal rate of return. (Use a trial-and-error approach and straight-line interpolation as necessary. Round all present value calculations to the nearest whole dollar and round the IRR to two decimal places, X.XX%.) The internal rate of return (IRR) is 10.62 %. Requirement 3. Calculate accrual accounting rate of return based on net initial investment. (Round interim calculations to the nearest whole dollar. Round the final rate to two decimal places, X.XX%.) Based on net initial investment, the accrual accounting rate of return (AARR) is 7.25%. Requirement 4. Calculate accrual accounting rate of return based on average investment. (Round interim calculations to the nearest whole dollar. Round the final rate to two decimal places, X.XX%.) Based on average investment, the accrual accounting rate of return (AARR) is 12.59% Requirement 5. You have the authority to make the purchase decision. Why might you be reluctant to base your decision on the DCF methods? made because the net present value is positive and the internal rate of return exceeds the required rate of return. the machine if you believe that your performance may actually be measured using accrual accounting in the form of the AARR method based on net initial investment. If your decision is based on the DCF model, the purchase would be You may be reluctant to purchase that is below the required rate. This approach would show a return on the initial investment