Use the following information in deciding whether to purchase the new backhoes:BackhoesOld BackhoesNew BackhoesPurchase cost when new$$90,000$$$200,000$Salvage value now$$42,000$ Investment in major overhaul needed in next year$$55,000$Salvage value in $8$ years$$15,000$$$90,000$Remaining life$8$ years$8$ yearsNet cash flow generated each year$$30,425$ calculate net present value, payback period and profitabilty index