Sheridan Inc. wants to purchase a new machine for $44,300, excluding $1,500 of installation costs. The old machine was purchased 5 years ago and had an expected economic life of 10 years with no salvage value. This old machine now has a book value of $2,200, and Sheridan 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 6-year period with no salvage value. Click here to view PV table. (a) Determine the cash payback period. (Round cash payback period to 2 decimal places, eg. 10.53.) Cash payback period years (b) Determine the approximate internal rate of return. (Round answer to decimal places, eg 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 9%, determine whether the new machine should be purchased. The investment accepted. Cullumber's Hair Salon is considering opening a new location in French Lick, California. The cost of building a new salon is $262,000. A new salon will normally generate annual revenues of $59,710, with annual expenses (including depreciation) of $40,900. At the end of 15 years, the salon will have a salvage value of $80,000. Calculate the annual rate of return on the project. Annual rate of return %