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S Helio System Announcementsnagerial, 34 CALCULATOR PRINTER VERSION NEXT Exercise 25-06 (Video) Swifty Inc. wants to purchase a new machine for $44,100, excluding $1,400 of

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S Helio System Announcementsnagerial, 34 CALCULATOR PRINTER VERSION NEXT Exercise 25-06 (Video) Swifty Inc. wants to purchase a new machine for $44,100, excluding $1,400 of installation costs. The old machine was bought five years ago and had an expected economic life of 10 years without salvage value. This old machine now has a book value of $1,900, and Swifty Inc. expects to sell it for that amount. The new machine would decrease operating costs by $10,000 each year of its economic life. The straight-line depreciation method would be used for the new machine, for a six-year period with no salvage value Click here to view PV table Determine the cash payback period (Round cash payback period to 2 decimal places. 10.52.) Cash payback period years (b) Determine the approximate internal rate of return (Round answer to decimal places, 13%. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Internal rate of return (c) Assuming the company has a required rate of return of determine whether the new machine should be purchased The Inwestment be accepted S Helio System Announcementsnagerial, 34 CALCULATOR PRINTER VERSION NEXT Exercise 25-06 (Video) Swifty Inc. wants to purchase a new machine for $44,100, excluding $1,400 of installation costs. The old machine was bought five years ago and had an expected economic life of 10 years without salvage value. This old machine now has a book value of $1,900, and Swifty Inc. expects to sell it for that amount. The new machine would decrease operating costs by $10,000 each year of its economic life. The straight-line depreciation method would be used for the new machine, for a six-year period with no salvage value Click here to view PV table Determine the cash payback period (Round cash payback period to 2 decimal places. 10.52.) Cash payback period years (b) Determine the approximate internal rate of return (Round answer to decimal places, 13%. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Internal rate of return (c) Assuming the company has a required rate of return of determine whether the new machine should be purchased The Inwestment be accepted

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