Traditionally, Granite Company has accepted a proposal only if the payback period is less than 50 percent of the asset's useful life. Peggy Casteel is the new accounting manager. She suggested to management that capital budgeting decisions should not be made based solely on the payback period. Granite Company is currently considering purchasing a new machine for the factory that would cost $112,000 and would be sold after 8 years for $50,000. The new machine will generate annual cash flows of $30,000 in its first year of use, $24,000 in its second year of use, $20,000 in the third year, and $14,800 each year thereafter. The company's cost of capital is 12 percent. Required 1-a. Complete the table given below. Year Flow Investment $112,000$ 30,000 82,000 24,000 20,000 14,800 14,800 14,800 0.0000 0.0000 58,000 38,000 23,200 8,400 (6,400) 1-b. Calculate the payback period. (Round your answer to 2 decimal places.) Payback Period 5.57 Years 1-c. Would Granite Company accept this project based solely on the payback period? No O Yes 2-a. Complete the table given below and Calculate NPV. (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided Negative amounts should be indicated by a minus sign. Round final answers to the nearest whole dollar amount.) Year Cash Outflow PV of $1 (12%) Present Value $ 112,000) 26,790 Residual NPV 2-b. Would Granite Company accept this project if the NPV method is used to evaluate the machine? O No Yes