Texas Inc. is considering the purchase of new equipment that will automate production and thus reduce labor costs. Texas made the following estimates related to the new machinery: (Click the icon to view the information.) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements. . . . places, X.XX%.) The discount payback period in years is 5.43 d. Internal rate of return. (Round the rate to two decimal places, X.XX%.) The internal rate of return (IRR) is 19.49 %. Requirement 2. Compare and contrast the capital budgeting methods in requirement 1. Select the characteristics that describe each budgeting method. (If an input field is not used, leave the input field empty; do not select a label.) Net present value:Attempts to measure its effective return on investment earned by the project Cash inows and outflows measured as if they occurred at a single point in time Computes the surplus generated by the project in today's dollars Considers nominal cash flows Ignores profitability of the project's entire stream of future cash flows Looks at the time taken to recoup the initial investment based on the discounted present value of cash inows Measures the time at which the project's expected future cash inflows recoup the net initial investment Uses the discounted cash flow approach Requirements 1. Calculate (a) net present value, (b) payback period, (c) discounted payback period, and (d) internal rate of return. 2. Compare and contrast the capital budgeting methods in requirement 1. Data table Cost of the equipment $108,000 Reduced annual labor costs $35,000 Estimated life of equipment 10 years Terminal disposal value $0 After-tax cost of capital 8% Tax rate 40% Assume depreciation is calculated on a straight-line basis for tax purposes. Assume all cash flows occur at year-end except for initial investment amounts