Sam's Structures desires to buy a new crane and accessories to help move and install modular buildings. The machine sells for $75,000 and requires working capital of $10,000. Its estimated useful life is six years and it will have a salvage value of $17,560. Sam's depreciates all equipment on a straight line basis. Recovery of working capital will be $10,000 at the end of its useful life. Annual cash savings from the purchase of the machine will be $20,000.

Required:

a. Compute the net present value at a 14% required rate of return.

b. Compute the internal rate of return.

c. Compute the Accounting Rate of Return

d. Determine the payback period of the investment.

Note: show all workings on this question including the genre and amount of all cash inflows and outflows, and the year of all cashflows for your NPV, IRR and payback calculations.