Simone Enterprises is considering the purchase of a new, more efficient machine for $$26,000.$ It is expected to have a useful life of $5$ years with $$1000$ salvage value. The estimated cost savings are below:

Year

Savings

$1$ $$10,000$

$2$ $ $8,000$

$3$ $ $6,000$

$4$ $ $5,000$

$5$ $ $2,000$

Using a required rate of return of $16\%$ and ignoring any tax effects, calculate the following:

a$.$ NPV

b$.$ Payback period

c$.$ Discounted payback period

d$.$ Accrual accounting rate of return using average annual savings to compute the numerator