Seattle Hospital, a taxpaying entity estimates that it can save $28,000 a year in cash operating costs for the next 10 years if it buys a special purpose eye-testing machine at a cost of $110,000 No terminal disposal value is expected Seattle Hospital's required rate of relum is 10% Assume all cash flows occur at year end except for initial investment amounts Seattle Hospital uses straight line depreciation. The income tax rate is 30% for all transactions that affect income taxes (Click the icon to view the Future Value of $1 factors) (Click the icon to view the Present Value of $1 factors) Read the requrements (Click the icon to view the Future Value of Annuity of $1 factors) (Click the icon to view the Present Value of Annuity of $1 factors) Requirement 1. Calculate the following for the special purpose eye-testing machine Net present value (NPR) (Round interm calculations and your final answers to the nearest whole dollar. Use a minus sign or parentheses for a negative net present value) The net present value is 5 Requirements 1. Calculate the following for the special-purpose eye testing machine a Net present value b. Payback period e Interal rate of retan d. Accrual accourting rate of retum based on net intal investment Aconal accounting rate of retum based on average investment 2. How would your computations in requrement 1 be affected if the special purpose machine had a $8,000 terminal disposal value at the end of 10 years? Assume depreciation deductions are based on the $110,000 purchase cost and zero teminal disposal value uong the sight method Answer briefly in words without further calculations Print Done