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 ofAnnuity of $1 table Future Value of $1 table Future Value of Annuityo_f$1 table Read the muirements. @ Requirement 1. Calculate (a) net present value, (b) payback period, (c) discounted payback period, and (d) internal rate of return. a. Net present value. (Round intermediary calculations to the nearest whole dollar. Use factors to three decimal places, X.XXX, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest whole dollar.) ' The net present value is $ 51.897 . b. Payback period. (Round your answer to two decimal places.) The payback period in years is |:| . 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. 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