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.