The Company remains committed to reducing its carbon footprint as well as those of its customers. In the second quarter, TPS successfully completed a testing campaign to replace conventional refrigerant gases for compressor testing at its largest global rotating machinery testing facility in Massa, Italy. The new hydrofluoro-olefin gas will enable the Company to save an average of 20,000 tons of CO2 equivalent emissions per year for the Massa and Florence TPS sites combined. On the report of OECD, THE lower-end estimates put the damage from emitting 1 tonne of CO2 at $47. Assuming an Australian hydrogen infrastructure developer borrowed 90 million/year with an interest rate of 9%, and they plan to repay the loan within 5 years.

A. Prepare a schedule of alternative payment plans based on Constant Principal payments, Interest Only payments, Constant Annual Payments, and Payment only at Maturity. 

B. Assuming (not the actual number), producing Baker Hughes generators will cost $80,000 to build a new machine, with annual operating and maintenance costs (O&M) of $5,000 , The machine is expected to reduce 300 tons of CO2 (equivalent cost of CO2 of $14100, and save other handling cost of $10,000 compared with other types of machine. The salvage value after 5 years is $10,000, Calculate the machine’s present worth using an interest rate of 9%.

C. What is the minimum acceptable rate of return on the new machine?