Sams"s structure desires to but a new crane and accessories to help move and install modular buildings. The Machine sells for 75,000 USD and requires working capital of 10,000 USD. Its estimated useful life is six years and it will have a salvage value of 15,560 USD. Recover fo working capital will be 10,000 USD at the end of its useful life. Annual cash savings from the purchase of the machine will be 20,000 USD.

a: Compute the net present value at a 12 percent required rate of return

b: compute the internal rate of return

c: Determine the payback period of the investment.